The Bakkt platform has just announced that it will now allow any institutions to use its Bitcoin custody solution. Previously, only those trading the platform’s Bitcoin futures contracts had access to the Bakkt Warehouse.
The news comes as Bakkt futures look on track to set another all-time high. After a rather dismal start to trading on the platform, interest appears now appears to have picked up.
Bakkt to Offer All Institutional Clients Access to its Bitcoin Custody Warehouse
According to a blog post by Bakkt, the company is opening up its regulated Bitcoin custody service to all institutions. The Bakkt Warehouse actually went live prior to the launch of the platform’s futures contracts this September. However, it was previously reserved for clients wanting to trade the physically-settled Bitcoin futures.
The New York Department of Financial Services (NYDFS) recently granted Bakkt permission to offer custody services to global clients. Already taking advantage of the service are Pantera Capital, Galaxy Digital, and Tagomi. Bakkt says that it is in the process of onboarding additional clients for its Warehouse service.
In the post, Bakkt’s Adam White describes custody as “perhaps the critical link” needed for institutional adoption of Bitcoin. He adds:
“Safely storing digital assets demands a comprehensive approach to custody. Institutions and sophisticated investors… require proven infrastructure, robust operational controls, and independent oversight.”
White also describes some of Bakkt’s procedures to ensure clients’ digital assets remain secure. He mentions the platform’s $125 million insurance policy, its segregation of personal duties, the auditing process it undergoes, and a host of other features aimed at protecting customer funds.
Interest in Bakkt’s Futures Continues to Heat Up
Despite a highly underwhelming debut, interest in Bakkt’s Bitcoin futures is finally starting to pick up. On Friday November 8, the platform smashed its previous all-time high. The daily session saw the trading of 1,741 Bitcoin futures contracts. The total dollar figure was almost $15.5 million.
https://twitter.com/BakktBot/status/1193169880817778690
Although these figures are still insignificant when compared with other cryptocurrency exchange trading volume, considering that month following Bakkt’s launch saw only figures between $200,000 and $1.9 million trade each day, the current volumes are a sizeable increase.
Today, Bakkt again looks on track to set a new all-time high. Traders had already exchanged 1,018 Bitcoin futures contracts at just a third of the way through the current session. The Bakkt monitoring Twitter account Bakkt Volume Bot (@BakktBot) projects a total daily volume for today of 2,031 contracts. This would be equivalent to more than $17.75 million.
https://twitter.com/BakktBot/status/1193909652540608512
Related Reading: Why Bitcoin Needs to Flip $9,700 Into Support to Support Bull Case
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