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Bakkt, a bitcoin futures market operated by ICE, the parent company of the New York Stock Exchange, is working closely with a major U.S. bank BNY Mellon according to Bakkt COO Adam White.
Read about @Bakkt's custody solution and why we've filed to become a NY trust, plus our acquisition of DACC and how we're working closely with @BNYMellon https://t.co/ecqMXWCoXe
— Adam White (@WhiteAdamL) April 29, 2019
To securely store the private keys of users that provide access to funds stored in crypto assets like bitcoin, White said that the firm is collaborating with BNY Mellon to geographically distribute private keys secured by the bank.
White said:
All cryptographic systems are secured in bank-grade vaults and datacenters that are protected with 24/7 physical security. Role-based permissions strictly limit employee access, and systems are routinely tested to ensure a seamless transition to our parallel disaster recovery facilities. Additionally, Bakkt is working closely with BNY Mellon to offer geographically-distributed storage of private keys secured by the bank. BNY Mellon has a longstanding history of safeguarding the assets of institutional clients such as hedge funds, asset managers, and broker dealers, and we’re excited to work with them.
Since its inception, Bakkt has been working on building a regulated and reliable infrastructure for crypto asset investors, enabling investors to invest in the crypto market in a protected environment.
According to White, the funds stored by Bakkt in bitcoin are insured by global insurance carriers, which would appeal to institutions and high net worth individuals that do not wish to be set off by potential risks involving cryptocurrency storage.
“The majority of assets are stored offline in air-gapped cold wallets that are insured with a $100,000,000 policy underwritten by leading global insurance carriers,” he said.
Although the launch of the bitcoin futures market by Bakkt is said to be on hold for the approval of the Commodities and Futures Trading Commission (CFTC), the company has made progress in establishing a solid infrastructure for institutiona clients.
“DACC shares our security-first mindset and brings extensive experience offering secure, scalable custody solutions to institutional clients. The team’s experience integrating multiple blockchains and operating cutting-edge consensus mechanisms is a valuable addition to our team and future product line,” White added.
