Bakkt acquires cryptocurrency storage service provider

Institutional Bitcoin Futures Platform Bakkt announced on Monday, April 29th, the acquisition of Digital Asset Custody Company (DACC), and also disclosed information about the partnership with a large American bank BNY Mellon.

Having worked in the crypto space developing advanced trading and custody solutions since 2013, IT's clear to Our COO @WhiteAdamL That ironclad Infrastructure and a security-first are the mindset of Fundamental Storing digital is to assets https://t.co/FivUb8bZtw

– Bakkt (@Bakkt) April 29, 2019

As operational director Adam White writes in the company's blog, Bakkt acquired the DACC to further develop a solution for secure storage of digital assets. According to him, the DACC team shares the desire of Bakkt to put security at the forefront, and will also be able to share valuable experience in developing secure and scalable custodial solutions.

He also made it clear that with the purchase of DACC, the Bakkt offer could be expanded to other cryptocurrencies.

“We are exploring the possibility of scaling and supporting additional digital assets, and the native support of 13 blockchains and more than 100 assets offered by DACC will give us an important acceleration, ” wrote Adam White, one of the top managers of Coinbase in the past.

In order to solve the problem of storing assets, Bakkt also entered into a partnership with BNY Mellon, in which it is working to create a “geographically distributed” system of private keys.

“Over the years of its work, BNY Mellon has established itself as a reliable custodian of the assets of institutional clients, including hedge funds and broker-dealer companies, ” says White.

Additionally, Bakkt has provided insurance coverage for assets that it will store in cold wallets:

“Bakkt uses the architecture of both hot (online) and cold (offline) wallets to store client assets. Most of the assets are stored outside the network in physically separated cold wallets that are insured for $ 100 million with the guarantee of the world's leading insurance companies, ”said Adam White.

The names of these companies, he, however, did not lead.

Additionally, the representative of Bakkt confirmed that the company intends to obtain BitLicense – permission to operate in the state of New York. It is assumed that this could be a weighty argument in the negotiations with the US Commodity Futures Trading Commission (CFTC), which still has not given the green light to launch deliverable bitcoin futures.

As BlockchainJournal wrote earlier, Bakkt’s investment valuation could already reach $ 740 million . This was made possible thanks to a massive round of funding for Series A for $ 182 million , which was attended by Microsoft, Boston Consulting Group, Galaxy Digital and others.

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