Bakkt, the reputed cryptocurrency exchange and the subsidiary of Intercontinental Exchange has launched its Bitcoin custodian services named the “Bakkt Warehouse” on September 6. The new platform allows the investors to buy and store cryptocurrency on a federally regulated market. This solution from Bakkt will open the blockchain space for investors who are not very comfortable with non-custodial services. Now, the Bakkt Warehouse is available to all institutions contrary to what it did previously; it only served those clients who were trading the Bakkt Futures contracts for Bitcoins.
Custodian service is an establishment guaranteeing to hold someone else’s assets. Blockchain technology, still being in a nascent stage, complicates these custodian services that leave the assets vulnerable to losses, if not handled properly. Therefore, businesses prefer third party solutions for crypto asset custody and storage. Here is where Bakkt came up with crypto custody solutions for safeguarding the crypto assets. However, Bakkt has decided to provide custodian services for Bitcoin only as of now, but it has plans to widen its arena if circumstances go in favor.
The institutional Bitcoin custody solution will be more cost-effective than the present Bitcoin custody products available. It purchases Bitcoins and then directly exposes them to the customers via the funds that it holds. In fact, the Bakkt Warehouse employs extensive physical and operational cybersecurity safeguards to securely store customers’ funds. Bakkt’s relationship with the Intercontinental exchange (NYSE: ICE) makes it possible to cater to the various crypto needs of the clients. This article puts light on some of the crypto asset needs of the clients that Bakkt can provide an easy solution to.
With the help of Bakkt custodian on-premises data centers, the reliance on third-party data centers and multi-tenant systems can be eliminated which works for the benefits of the users. Customers’ funds can be provided with very high-level security by using the bank-grade vaults, which are biometrically controlled. The geographically distributed facilities provide redundant supports to all the production overloads in the event of a catastrophe.
The Bakkt Warehouse provides 24 X 7 video monitoring protections to all the operations and also provides instant responses in cases of urgencies. To protect from insider threats, Bakkt Warehouse is armed with anti-collusion controls and independent reporting infrastructures to ease the work of identifying the threats coming from within the organizations and instantly reporting them to the higher authorities.
There is an independent audit board along with the independent examining committees who are responsible for safeguarding the customers’ funds independently. Third-party audit programs take place regularly along with the official Enterprise Risk Management program and internally managed processes, to eliminate any kind of risks inherent to the safeguarding of the customers’ assets.
This way, Bakkt has been gaining the customers’ trust and confidence since its inception, thereby hugely contributing to the global economy.