Bakkt and Galaxy Digital Team-Up on New Institutional Offering

Bakkt and Galaxy Digital Workforce-Up on New Institutional Providing

The Intercontinental Trade’s digital asset custody and derivatives platform Bakkt has partnered with crypto asset supervisor Galaxy Digital to launch a ‘white glove’ service for establishments looking for Bitcoin (BTC) publicity.

The collaboration will see Galaxy Digital Buying and selling’s (GDT) matching engine and buying and selling platform supplied alongside Bakkt’s digital asset custody providers. 

“We designed this partnership to service the uptick in demand our two corporations have acquired from conventional asset managers looking for entry to bodily Bitcoin,” stated Galaxy Digital’s Tim Plakas.

“Collectively, Galaxy Digital and Bakkt provide a secure, environment friendly, and well-regulated route into bodily bitcoin entry,” Plakas added.

Galaxy Digital and Bakkt staff up

In an interview with Bloomberg, Bakkt’s custody head John Conneely stated the partnership was established in response to robust institutional demand for crypto asset publicity

The partnership will see GDT supply liquidity from over 30 market makers, with buying and selling going down 24 hours a day, 365 days per yr. GDT generated over $1 billion in digital asset quantity throughout the first quarter of 2020 spanning its spot, lending, derivatives, and structured crypto merchandise.

“Asset managers and hedge funds contemplating this service may be assured by the excessive requirements we maintain as a publicly-traded firm with audited, public monetary statements and an institutional-sized steadiness sheet,” famous Plakas.

Bakkt warehouse

Since launching its ‘Bakkt Warehouse’ final yr, the ICE subsidiary has on boarded over 70 purchasers for its custody providers.

Bakkt makes use of a mix of heat and chilly storage to safe funds, with the vast majority of capital saved offline. Funds saved within the Bakkt warehouse are coated by a $125 million insurance coverage coverage, with prospects capable of buy greater than $500 million in extra protection.