Bakkt acquires Digital Asset Custody Company; seeks qualified custodian license from NYDFS
Tue, 30 Apr 2019, 10:34 am UTC
Crypto futures exchange Bakkt has announced the acquisition of Digital Asset Custody Company (DACC) as part of its efforts to securely store digital assets.
In an online post dated April 29, Bakkt COO Adam White said that Bakkt acquired DACC to set “a new standard for securely storing digital assets.”
“DACC shares our security-first mindset and brings extensive experience offering secure, scalable custody solutions to institutional clients,” White wrote.
“As we look to scale and support custody of additional digital assets, DACC’s native support of 13 blockchains and 100+ assets will serve as an important accelerator, and we’re pleased to welcome Matthew Johnson, Adam Healy, and the entire DACC team to Bakkt.”
In addition, White said that Bakkt, which uses both online and offline wallet architecture to secure customer funds, has secured insurance for funds stored offline in cold wallets.
“The majority of assets are stored offline in air-gapped cold wallets that are insured with a $100,000,000 policy underwritten by leading global insurance carriers, he said.
White also revealed that Bakkt is working with BNY Mellon to offer geographically-distributed storage of private keys secured by the bank. He said:
“BNY Mellon has a longstanding history of safeguarding the assets of institutional clients such as hedge funds, asset managers, and broker dealers, and we’re excited to work with them.”
Earlier this month, reports suggested that Bakkt was seeking a crypto license from New York financial regulators to hold custody of customers’ tokens. This is expected to aid the launch of Bakkt’s first offering – a physical-delivery bitcoin future, which is subject to regulatory approval from the CFTC. White confirmed this saying:
“To provide regulated custody, we have filed with the New York Department of Financial Services for approval to become a trust company and in this capacity serve as a Qualified Custodian for digital assets.”
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