Crypto platform Bakkt on Monday announced that Bitcoin deposits on its Warehouse platform are secured by a $125 million insurance cover.
The Bakkt Warehouse is active for futures
Bitcoin deposited at our Warehouse is protected by a $125 million insurance policy
— Bakkt (@Bakkt) September 9, 2019
The company, however, did not specify any details, such as the name of the insurer.
CEO Spotlight: Alon Rajic on the Future of UK/EU Trade and EconomicsGo to article >>
Bakkt started accepting Bitcoin deposits on its Warehouse platform on September 6, weeks ahead of the launch of its futures platform on September 23.
The Intercontinental Exchange-owned company is going to be the first physically delivered Bitcoin futures in the United States. Though the company finally received a green light from the Commodity Futures Trading Commission, its launch was delayed several times due to regulatory holdups.
The company already launched a test version of its upcoming platform in June to perform “user acceptance testing.”
Will it spike the prices of Bitcoin?
Bakkt’s futures platform is one of the most anticipated developments in the crypto industry. In an official announcement, Adam White, chief operating officer at Bakkt, compared the platform with the introduction of ATMs by banks before 50 years.
The company is also set to launch a fully regulated marketplace for institutions and major clients after the launch of the futures platform.
“It represents a milestone as we prepare for the launch of the Bakkt Bitcoin Daily and Monthly Futures contracts on ICE Futures U.S. Trusted infrastructure, particularly the regulated and secure custody of digital assets, is at the core of everything we do at Bakkt,” White noted.
Meanwhile, with the initiation of deposits on Bakkt Warehouse, last Friday, $1 billion worth Bitcoins were transferred to one single Bitcoin wallet address. Without any known ties to any exchange, many are speculating it to be Bakkt’s deposits. However, nothing about the transactions is confirmed yet.