Bakkt Secures Its Bitcoin Custody with a $500M Insurance Policy

Bakkt, a cryptocurrency platform owned by Intercontinental Exchange (ICE), has secured its custody business with an additional $500 million insurance policy as its institutional client list is growing.

In an official post published on Monday, the crypto company has revealed that Bakkt Warehouse, its Bitcoin custody platform, is now serving more than 70 institutional clients.

The company also highlighted that popular crypto brokers like Tagomi are receiving custody services from Bakkt.

Bakkt Warehouse is a part of Bakkt Trust Company and was developed with the same cybersecurity and infrastructure as in the New York Stock Exchange.

The ICE-subsidiary acquired Digital Asset Custody Company (DACC), which provides cryptocurrency custody solutions to institutional investors and token issuers holding digital assets. The takeover helped Bakkt to secure the New York regulator’s approval to operate as a so-called ‘qualified custodian,’ which permits the company itself to hold custody of customers’ tokens.

Ensuring security to the institutions

The new insurance policy has been inked with a collaboration with the Digital Asset Risk Transfer team from Marsh.

Notably, Bakkt Warehouse funds were already covered with an existing insurance policy of $125 million.

Bakkt primarily offers US-regulated Bitcoin derivatives products that are settled in Bitcoin instead of cash to eliminate Slippage Slippage In financial trading, slippage refers to the difference in price between the price an order was intended or expected to be filled and the actual price an order was filled. Slippage is a very contentious issue among retail traders, which can lead to issues. Many traders view levels of slippage at brokers as a key determinant for their business. For example, in forex trading, if a trader places a trade intending to enter a buy on the EUR/USD at 1.1080, but they only get into the market at a price In financial trading, slippage refers to the difference in price between the price an order was intended or expected to be filled and the actual price an order was filled. Slippage is a very contentious issue among retail traders, which can lead to issues. Many traders view levels of slippage at brokers as a key determinant for their business. For example, in forex trading, if a trader places a trade intending to enter a buy on the EUR/USD at 1.1080, but they only get into the market at a price Read this Term.

The company is also planning to bring its trading platforms on mobile devices, however, the timeline of the launch is not public yet.

The ICE subsidiary recently acquired Bridge2 Solutions, a loyalty points platform, in a deal that is saying to be around $300 million.

“Our enterprise loyalty products provide critical infrastructure to companies around the world and we’re proud to power thousands of programs that unlock digital assets for consumers,” Bakkt stated. “Whether it’s airline miles, credit card points, or Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, our products are making digital assets more accessible, useful, and trusted.”