Bakkt Rolls Out ‘Critical’ Bitcoin Custody After NY Gives Green Light

Institutional Bitcoin (BTC) trading platform Bakkt has announced it has launched its custody feature for its entire client base following regulatory approval.

Bakkt: custody is “critical link” in BTC adoption

In a blog post on Nov. 11, Bakkt said it had received the go-ahead from the New York Department of Financial Services (NYDFS) to offer custody services to any institution. Previously, the option was only available for those trading its Bitcoin futures.

Commenting on the release, Bakkt described the custody tool as “the critical link in the institutional adoption of Bitcoin.”

“Safely storing digital assets demands a comprehensive approach to custody. Institutions and sophisticated investors need more than cutting-edge technology. They require proven infrastructure, robust operational controls, and independent oversight,” the blog post added.

Investors eye price reaction

As Cointelegraph reported, the wider cryptocurrency sphere has keenly eyed the appearance of custody solutions following initial futures rollouts beginning in 2017.

Among them is Mike Novogratz, the serial investor who recently identified Bakkt’s offering as forming part of the essential metamorphosis of Bitcoin’s institutional appeal. 

“But more importantly they’ve got a custody solution that’s just coming online… world-class custody which allows more and more people to feel comfortable with it,” he said in an interview late last month. 

Bakkt’s Bitcoin futures contracts have set new records of their own in recent days, with $15 million traded daily.