Bakkt Relaunches Its Crypto Custody Platform, Adds Support for Six New Cryptocurrencies
Coinspeaker
Bakkt Relaunches Its Crypto Custody Platform, Adds Support for Six New Cryptocurrencies
Crypto trading and custody company Bakkt Holdings has announced the relaunch of its Bakkt® Custody platform in response to the escalating demand for secure storage solutions for digital assets.
According to an official announcement on November 15, the company said the new platform boasts advanced features such as segregated on-chain wallet addresses, configurable security processes, and enhanced reporting capabilities. The move marks a pivotal step in Bakkt’s commitment to providing a robust and secure environment for crypto investors.
Enhanced Crypto Custody Services
Bakkt aims to fortify its position in the crypto market with infrastructures built to withstand the evolving regulatory landscape in the industry.
The firm, operating under Bakkt Trust Company LLC, a qualified custodian under the New York Department of Financial Services (NYDFS), prioritizes institutional-grade security and reliability. It enforces stringent security protocols, using methods like cold storage and multi-signature technology to secure cryptographic keys to actively protect user’s assets.
Additionally, the company is insured to safeguard digital assets under its custody, although it is subjected to independent third-party testing, and managed with comprehensive security and operational controls outlined in robust security and compliance policies.
With custody as one of its major product offerings, the company plans to become a go-to platform that takes security and customer funds very seriously to avoid the repetition of what happened last year, referring to the collapse of FTX.
“The events of the past year have revealed why qualified crypto custody is so necessary. Bakkt takes pride in being a provider that never commingled funds and always puts our client’s security first. With custody as a core anchor product, our team has been working diligently to enhance our platform with infrastructure built to withstand the shifting regulatory environment,” said Gavin Michael, the President and CEO at Bakkt.
The company also plans to roll out more advanced features in the future to bolster its foothold in the crypto space with international expansion to Latin America, Asia, and Europe set by the end of this year.
Bakkt Adds Support For DOGE, SHIB, ETC and Others
In addition to Bitcoin (BTC) and Ethereum (ETH), Bakkt has introduced six more crypto assets into its custody platform. The company said it had added support for Dogecoin (DOGE), Bitcoin Cash (BCH), Ethereum Classic (ETC), Litecoin (LTC), Shiba Inu (SHIB), and USD Coin (USDC), giving traders more options to invest in.
According to the firm, the addition of these tokens to the enhanced custody platform brings it to parity with what is offered through Bakkt® Trading. The newly added crypto assets will be available on the platform starting December 2023.
“These additional assets allow us to cater to clients seeking more fluidity between platforms. We’re pleased to increase our offering in a secure and regulatory-first way,” Michael said.
The addition of these tokens comes shortly after Bakkt disclosed its Q3 2023 earnings report on November 14, revealing an adjusted EBITDA loss (non-GAAP) of $21.6 million, signifying a 30% year-over-year decrease. The company attributed the downturn to a reduction in compensation and benefits.
According to the financial report, Bakkt’s crypto revenue surged to $191.8 million during the third quarter of 2023, propelled by the strategic acquisition of Apex Crypto in April. The overall revenue generated by the company for the quarter reached $204.8 million. Although there was a notable 28% decrease in assets under custody compared to the previous year, Bakkt still reported a substantial figure of $505.7 million.
To bolster its crypto custody endeavors, Bakkt is actively forging partnerships. The company’s quarterly report outlined plans to provide clearing and custodial services for EDX Markets, a Wall Street-backed crypto exchange, with an initial role as a backup qualified custodian.
The company also secured new customers for its custodial business including Unchained, a Bitcoin platform, and LeboBTC, a crypto consulting firm specializing in services for institutional investors.
Bakkt Relaunches Its Crypto Custody Platform, Adds Support for Six New Cryptocurrencies