Bakkt Launches Bitcoin Custody After Receiving NY Regulatory Approval

Institutional Bitcoin (BTC) trading platform Bakkt has revealed it has rolled out its custody feature for its entire customer base after administrative endorsement. 

In a blog entry on November 11, Bakkt stated it had gotten the green light from the New York Department of Financial Services (NYDFS) to provide custody services to any institution. Earlier, the option was only accessible for those trading its Bitcoin futures.

Giving comments on the launch, Bakkt described the custody instrument as “the critical link in the institutional adoption of Bitcoin.”

“Safely storing digital assets demands a comprehensive approach to custody. Institutions and sophisticated investors need more than cutting-edge technology. They require proven infrastructure, robust operational controls, and independent oversight,” the blog entry stated.

As previously reported, the wider digital currency circle has keenly eyed the presence of custody solutions after first futures rollouts starting in 2017.

Among them is Mike Novogratz, the serial investor who earlier distinguished Bakkt’s offering as forming part of the fundamental metamorphosis of Bitcoin’s institutional appeal.

“But more importantly they’ve got a custody solution that’s just coming online… world-class custody which allows more and more people to feel comfortable with it,” he stated in an interview last month.

Bakkt’s Bitcoin futures contracts have established new records of their own recent days, with $15 million traded every day.