Bakkt provides institutional investors with exposure to bitcoin. The company now prepares to go further by providing a custodial solution.
Most people know Bakkt as a provider of bitcoin futures contracts.
Bakkt Looks Beyond Bitcoin Futures
So far, the company has made a name for itself in this regard.
To keep the momentum going, new products and services will need to be launched.
Such services need to be aimed at institutional clients first and foremost.
Custodial services can play a crucial role in that department.
For institutional clients, it is often inconvenient to buy bitcoin and store it themselves.
Instead, they will favor using a third-party service provider.
Bakkt now wants to be that provider, by launching its Institutional Custody solution.
Following approval by the NYDFS, the company can offer bitcoin custody to all institutions.
Some companies are already signing up for this new service.
That list includes Pantera Capital, Galaxy Digital, and Tagomi.
Onboarding additional companies will be an ongoing process.
To securely store the assets, Bakkt will use biometrically-controlled bank-grade vaults and enterprise-grade Hardware Security Modules.
There are also primary and secondary facilities distributed around the world.
Transactions will need to be signed by multiple entities across different geographical locations.
Another big move for Bakkt, although custodial solutions are in stark contrast to what bitcoin is really all about.