Bakkt reveals $125M insurance policy protection for bitcoin stored in Bakkt Warehouse
Tue, 10 Sep 2019, 07:05 am UTC
Crypto futures platform Bakkt has announced that the bitcoin deposited at its regulated custodian, Bakkt Warehouse, is protected by a $125 million insurance policy.
Bakkt Warehouse started accepting customer deposits and withdrawals on September 06, ahead of the launch of Bakkt’s much-awaited futures contract offerings on September 23.
The Bakkt Warehouse is active for futures— Bakkt (@Bakkt) September 9, 2019
Bitcoin deposited at our Warehouse is protected by a $125 million insurance policy
Custody at the Bakkt Warehouse is live— Bakkt (@Bakkt) September 9, 2019
BNY Mellon helps safeguard private key material by providing geographically-distributed storage of customer assets for the Bakkt Warehouse
Earlier in April, Bakkt had announced that it was working with BNY Mellon to offer geographically-distributed storage of private keys secured by the bank.
Bakkt Warehouse is regulated by the New York State Department of Financial Services (NYDFS) as a Limited Purpose Trust Company, providing customers with a qualified custodian of bitcoin.
“The launch of the Bakkt Warehouse, our regulated custodian and part of Bakkt Trust Company, allows for the safe, secure storage of bitcoin. It represents a milestone as we prepare for the launch of the Bakkt Bitcoin Daily and Monthly Futures contracts on ICE Futures U.S.,” Adam White, Bakkt COO, wrote in an online post.
White said that Bakkt will create the “first fully regulated marketplace specifically designed to meet the needs of institutional firms and their clients” when the physically-delivered Bakkt Bitcoin Futures contracts launch later this month.
“The contracts will be physically settled, such that the selling Clearing Member would be required at settlement to deliver to the buying Clearing Member a specified quantity of Bitcoin,” according to the ICE Futures U.S. filing with the Commodity Futures Trading Commission (CFTC).
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