Bakkt launches institutional custody platform
After receiving approval from the New York Department of Financial Services (NYDFS), Bakkt announced today that it would officially launch Bakkt Warehouse, its institutional custody offering. Previously, the Bakkt Warehouse was only available to clients trading the Bakkt Bitcoin Futures contracts. Bakkt lists Pantera Capital, Galaxy Digital, and Tagomi among their first customers, with plans to onboard additional marquee names over the coming weeks.
Why it matters:
- Bakkt posted its highest single-day trading volume ever on Friday, facilitating ~$15mm of in trades of its physically-settled monthly Bitcoin futures. Notably, the firm also recently rolled out a liquidity incentive program on Nov. 1, in an effort to boost volumes.
- Bakkt Warehouse comes online in an increasingly competitive enterprise custody environment as businesses look to provide the critical institutional infrastructure that may help facilitate the next cryptocurrency bull run.
- Bakkt is the only regulated provider of physically-settled Bitcoin futures. The launch of its qualified custodian helps further cement its place with traditional institutions.
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