Bakkt Expands Digital Asset Custody with Support for New Coins
Bakkt, a crypto firm, has announced that it is relaunching its Bakkt® Custody service with additional functionality and support for six new coins. This move comes as the company seeks to expand its custodial services to include Bitcoin Cash (BCH), Dogecoin (DOGE), Ethereum Classic (ETC), Litecoin (LTC), Shiba Inu (SHIB), and USD Coin (USDC) in addition to Bitcoin (BTC) and Ether (ETH).
Digital asset custody focuses on safeguarding cryptographic keys, which are essential for accessing and transferring assets. Bakkt employs various security measures, including cold storage of coins and multisignature technology that requires multiple approvals for access.
Despite experiencing an adjusted EBITDA loss of $21.6 million in the third quarter of 2023, Bakkt’s crypto revenue reached $191.8 million thanks to the acquisition of Apex Crypto. To strengthen its crypto custody arm, Bakkt is also developing partnerships with Wall Street-backed crypto exchange EDX Markets, Unchained, and LeboBTC.
The Importance of Qualified Crypto Custody
Bakkt CEO Gavin Michael emphasized the necessity of qualified crypto custody following the challenges of the past year. Expanding custody services is part of Bakkt’s strategy for targeting business-to-business clients. Many traditional financial institutions are also entering the digital asset custody space, such as BNY Mellon and DZ Bank.
Hot Take: Bakkt’s Expansion Signals Growth in Digital Asset Custody Services
Bakkt’s decision to expand its digital asset custody services to include support for new coins is a significant development in the cryptocurrency industry. The move not only demonstrates Bakkt’s commitment to strengthening its presence in the market but also reflects the growing demand for secure and reliable custodial services for digital assets.
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