Intercontinental Exchange (ICE) backed crypto startup, Bakkt, has taken significant steps to launch its long-awaited digital asset platform, that will offer physically delivered Bitcoin futures contracts.
In an April 29 Medium post, Bakkt’s Chief Operating Officer, Adam White provided insights into measures that the crypto startup takes to ensure safe custody for client’s digital assets ahead of its proposed launch.
Amongst several of such measures outlined by the COO, three remarkably stands out.
1.License Application in New York
In line with rumours that Stmarket.co reported earlier this month, Bakkt confirmed that it recently applied for a crypto custodian license with the New York Department of Financial Services (NYDFS).
Securing such a license will allow Bakkt to custody crypto clients, a requirement noted as a bone of contention in the startup’s quest to obtain regulatory approval from the U.S Commodity and Futures Trading Commission (CFTC).
Clearing that hurdle as Adam White asserted will allow Bakkt to “provide the first end-to-end regulated environment for price discovery of crypto” and also acquire many institutional clients after its launch.
2.Insurance Cover For Crypto Assets
With the U.S SEC once mentioning lack of reliable insurance covers for digital assets in one of its Bitcoin ETF rejection, it catches the eye that Bakkt has quickly moved to secure such a cover for the large volumes of cryptocurrencies it expects to custody.
As per the update, Bakkt has secured its cold wallets which hold a majority of client funds with a $100,000,000 insurance policy.
3.Acquisition of Digital Asset Custody Company (DACC)
In addition to Bakkt’s now-pending crypto custodian license, the startup announced its acquisition of Digital Asset Custody Company (DACC), an already regulated crypto custodian.
While Bakkt does no intend to use DACC’s regulatory cover to launch its product (if that were possible), it notes that the acquisition will allow it to scale effortlessly when it starts introducing support of cryptocurrencies other than Bitcoin.
Bakkt says that DACC’s native support for 13 blockchains and 100+ assets will serve as an essential accelerator in its quest to build a digital asset custody powerhouse soon.
Although Bakkt did not announce a possible launch date for its long-awaited platform, the latest moves may arguably be the most significant along the road.
How soon Bakkt?
We only know that we’re closer than ever before.