Bakkt, a cryptocurrency platform owned by Intercontinental Exchange (ICE), has secured its custody business with an additional $500 million insurance policy as its institutional client list is growing.
In an official post published on Monday, the crypto company has revealed that Bakkt Warehouse, its Bitcoin custody platform, is now serving more than 70 institutional clients.
The Most Diverse Audience to Date at FMLS 2020 – Where Finance Meets Innovation
The company also highlighted that popular crypto brokers like Tagomi are receiving custody services from Bakkt.
Bakkt Warehouse is a part of Bakkt Trust Company and was developed with the same cybersecurity and infrastructure as in the New York Stock Exchange.
The ICE-subsidiary acquired Digital Asset Custody Company (DACC), which provides cryptocurrency custody solutions to institutional investors and token issuers holding digital assets. The takeover helped Bakkt to secure the New York regulator’s approval to operate as a so-called ‘qualified custodian,’ which permits the company itself to hold custody of customers’ tokens.
Ensuring security to the institutions
The new insurance policy has been inked with a collaboration with the Digital Asset Risk Transfer team from Marsh.
Notably, Bakkt Warehouse funds were already covered with an existing insurance policy of $125 million.
Bakkt primarily offers US-regulated Bitcoin derivatives products that are settled in Bitcoin instead of cash to eliminate slippage.
The company is also planning to bring its trading platforms on mobile devices, however, the timeline of the launch is not public yet.
The ICE subsidiary recently acquired Bridge2 Solutions, a loyalty points platform, in a deal that is saying to be around $300 million.
“Our enterprise loyalty products provide critical infrastructure to companies around the world and we’re proud to power thousands of programs that unlock digital assets for consumers,” Bakkt stated. “Whether it’s airline miles, credit card points, or cryptocurrencies, our products are making digital assets more accessible, useful, and trusted.”