Bakkt announced yesterday that they got the green light to go ahead with their institutional custody. Bakkt’s CEO Adam White called this move “the critical link” in the institutional adoption of bitcoin custody. Soon after this announcement, Pantera Capital, one of the leading crypto-based investment company, chose Bakkt for Custodial service.
What is Bakkt bitcoin Custodial service?
Bakkt offers warehouse custody services to institutions that want to keep their bitcoins with them. Previously, the custodial service was only available to clients trading the Bakkt Bitcoin Futures contracts. Now the intercontinental exchange backed Bakkt received authorization from the New York Department of Financial Services (NYDFS) to offer bitcoin custody to all institutions around the world. Tagomi and Galaxy Digital also chose Bakkt Warehouse as their custodian.
Could it help boost Bakkt’s volume?
The Futures exchange had a pretty slow start when it was launched in September, but over the past few weeks, volumes on the exchange have been growing steadily. As reported earlier, Bakkt recorded an all-time high volume on 9th November as 1,756 Bitcoin Futures contracts were traded on the platform. It would be interesting to see what this expansion in custodial service of the Bakkt warehouse has on the volumes of the futures exchange.
