Bakkt Exchange Prepares for Bitcoin (BTC) Custody, Acquires DACC Storage Operator
The Bakkt exchange, set to offer Bitcoin (BTC) futures with physical delivery, focuses on its cold storage security.
Bakkt Exchange, the upcoming market for Bitcoin (BTC) futures with physical delivery, has acquired the Digital Asset Custody Company (DACC). The addition of the new business was announced by the Bakkt COO Adam White in a recent blog post.
“DACC shares our security-first mindset and brings extensive experience offering secure, scalable custody solutions to institutional clients. The team’s experience integrating multiple blockchains and operating cutting-edge consensus mechanisms is a valuable addition to our team and future product line,” commented White.
Custody and ownership of digital assets are one of the contentious issues for regulators. The challenges of keeping digital assets safe in an environment of aggressive hacking attempts are significant. The Bakkt exchange has set out to build a standard for secure storage, and the acquisition of DACC will support that vision.
“As we look to scale and support custody of additional digital assets, DACC’s native support of 13 blockchains and 100+ assets will serve as an important accelerator, and we’re pleased to welcome Matthew Johnson, Adam Healy, and the entire DACC team to Bakkt,” White said.
Bakkt is aiming to build bank-grade security, keeping private keys in bank-grade vaults and data centers, with live security. For this reason, Bakks is also partnering with BNY Mellon to achieve geographical distribution of private keys in bank-grade storage.
Bakkt has delayed its launch, despite plans about the start of trading happening by the end of April. There is no new deadline for the approval and the trading launch, but the team is working toward its goal. It is expected that the Bakkt exchange may increase mainstream demand for physical BTC coins.
Physical storage for digital assets has been a personal security concern since the start of Bitcoin. But for some, extra security for private keys or custodial solutions are essential. Even for regular traders, loss of funds due to poor custody and security flaws is a constant threat.