ICE’s major institutional cryptocurrency trading platform Bakkt has announced the аcquisition of crypto custodian service – the Digital Asset Custody Company (DACC), as reported by the company itself on April 29th.
Former Coinbase executive turned Bakkt COO Adam White, wrote in a blog post Monday that it had acquired DACC with the aim to continue developing a secure digital asset storage solution. No details about how much the acquisition cost have been revealed. Furthermore, the post also stipulates a number of new measures in an effort to stimulate regulatory feedback.
The entire team at DACC will be joining the company, as the team shares Bakkt’s security-first mindset and will bring experience in building its own secure and scalable custody solutions.
White further added that DACC’s native support of 13 blockchains and more than 100 assets will contribute greatly to the scaling of the platform as well as adding support for other cryptocurrencies beyond Bitcoin (BTC).
In the same blog post, it was disclosed that the exchange platform has been working closely with global bank BNY Mellon on developing and establishing a geographically-distributed private key storage, in order to provide more storage solutions to its clients.
On another note, Bakkt has secured as well insurance for funds, which are stored offline.
According to White, the exchange uses both warm (online) and cold (offline) wallet architecture to secure customer funds. Thus, the majority of assets are stored offline “in air-gapped cold wallets that are insured with a $100,000,000 policy underwritten by leading global insurance carriers,” however the COO has offered no names for who these insurance carriers might be.
Meanwhile, the COO has also revealed that the exchange has filed an application with the New York Department of Financial Services (NYDFS) to operate as a trust fund.
If granted, the exchange would be able to offer a regulated custody for any crypto assets that it holds, which may facilitate the launch of physical bitcoin future contract. Respectively, Bakkt stated that the company is seeking to launch physically-delivered BTC futures, with contracts set to be traded on ICE Futures US (IFUS) and cleared on ICE Clear US (ICUS), which is a federally regulated exchange and clearinghouse overseen by the United States Commodity Futures Trading Commission (CFTC).
ICE – operator of 23 major global exchanges, including the New York Stock Exchange (NYSE), had first announced the launch of the Microsoft cloud-powered “open and regulated, global ecosystem for digital assets” Bakkt back in August of 2018. The launch date had been initially set for January 2019, however due to the pending approval from the CFTC, Bakkt postponed the launch to later within the year.