Bakkt setting standard for secure digital asset storage

Adam White, Chief Operating Officer at Bakkt provided insight on 29 April into setting new standards for safely storing digital assets. This would extend beyond institutional clients to customer funds.

Bakkt is a platform that allows users to buy, sell, store and spend digital assets safely and efficiently. Bakkt is backed by Intercontinental Exchange (ICE) while leveraging ICE’s financial market infrastructure and technology.

Adam started by informing that having worked in the crypto space developing advanced custody solutions, he was clear on providing security for digital assets. Adam also emphasized the need to integrate the right team of engineers. Such personnel should have sound knowledge of cryptography and distributed systems. This robust combination of human ingenuity and advanced systems provides the base for an efficient custody solution.

Adam commented on the endeavors of Bakkt as –

“At Bakkt, we’re focused on building the future of digital asset infrastructure. We’re doing this to help broaden adoption for a technology that holds tremendous promise, but has yet been developed to its full potential. By launching a regulated custodian for digital assets, Bakkt will be able to support a variety of products and services that help fulfill this potential.”

Adam sustained by throwing light on Bakkt’s first solution, a physical-delivery bitcoin future. He added that this contract would be traded on ICE Futures US (IFUS) and cleared on ICE Clear US (ICUS). These are federally regulated exchange and clearinghouse regulated by the Commodity Futures Trading Commission (CFTC). In a bid to provide regulated custody, Bakkt has filed with the New York Department of Financial Services to become a trusted company.

Bakkt setting standard for secure digital asset storage

Adam informed that such an approach would provide the first comprehensive regulated environment for price discovery of crypto. This implies that investors would have access to high performance, low latency exchange and clearing infrastructure. Such privileges are currently available to many of the world’s reputed futures markets.

Last month, Bakkt had reported about the ongoing work at Bakkt while also informing that an exact launch date is uncertain for one of their offerings. The firm emphasized that solutions that were being built at Bakkt, carve a niche to address security issues. Bakkt was working on mitigating risks that discourage many users from interacting with digital assets. 

Adam expressed focus on a key development which was the acquisition of Digital Asset Custody Company (DACC). He indicated that this deal was aligning to the company’s commitment to safeguarding digital assets. Adam clarified that DACC shared Bakkt’s security-first mindset and holds extensive experience offering scalable, secure custody solutions to institutional clients.