Raising the Bar: Announcing Bakkt Institutional Custody

Adam White
Nov 11 · 3 min read

Enterprise-grade bitcoin custody built for institutions

A critical link — perhaps the critical link — in the institutional adoption of bitcoin is custody. When investors have ready access to regulated custodians whose security and processes they trust, the full potential of this emerging asset class and technology can flourish.

That’s why we’re excited to announce that the Bakkt Warehouse, our qualified custodian of bitcoin, is now available to all institutions. Previously, the Bakkt Warehouse only served clients trading the Bakkt Bitcoin Futures contracts. Having now received authorization from the New York Department of Financial Services (NYDFS) to offer bitcoin custody to all institutions, clients around the world have the ability to safeguard their assets using Bakkt’s enterprise-grade offering.

Among the first to choose the Bakkt Warehouse as their preferred digital asset custodian are Pantera Capital, Galaxy Digital, and Tagomi. In the coming weeks Bakkt will be onboarding additional marquee firms to our custody offering.

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.

While technology provides the foundation by which we securely store customer funds, the Bakkt Warehouse employs extensive physical, operational and cybersecurity safeguards too. Our relationship with Intercontinental Exchange (NYSE: ICE), a Fortune 500 company that owns and operates the market infrastructure upon which the world’s largest financial institutions already rely, enables us to uniquely address client needs in the digital asset custody space, such as:

Enterprise-Grade Infrastructure

  • On-premises datacenters and dedicated network connectivity between operational sites eliminate reliance on multi-tenant systems, colocation (“colo”) facilities, and third-party data centers.
  • We use biometrically-controlled bank-grade vaults and enterprise-grade FIPS 140–2 Level 3 Hardware Security Modules (HSMs) to ensure both safekeeping and availability of customer funds.
  • Geographically-distributed primary and secondary facilities provide redundant systems, capable of supporting all production workloads and disaster recovery.

Operational Controls

  • We protect operational facilities with 24x7 video monitoring, armed guards, and security operations as well as incident response teams.
  • All signing operations are geographically-distributed and require multiple entities in multiple locations to fully sign a transaction.
  • We enforce segregated duties, protected identities, and independent reporting structures to provide insider threat and anti-collusion controls.
  • Independently audited Business Continuity and Disaster Recovery programs ensure the safekeeping of customer funds in the event of a natural disaster or emergency.

Independent Oversight

  • Bakkt Trust Company is a limited purpose trust company that is regulated by the NYDFS and has a majority-independent board, including audit and examining committees.
  • Our $125 million insurance policy is underwritten by a leading global syndicate of insurers.
  • We have regular third-party audits, including SOC 2 Type II certifications, a formalized Enterprise Risk Management program, and an internally-managed change approval process.

At Bakkt, we’re committed to expanding access to the global economy by building trust in and unlocking the value of digital assets. The secure custody of digital assets is the foundation of that mission and our solutions for customers. Whether it’s creating the first regulated market for the price discovery of bitcoin, or developing platforms that allow merchants and consumers to seamlessly interact using digital assets, custody is at the core of everything we do.

If you’re interested in opening a Bakkt Warehouse account, contact us at sales@bakkt.com.

Bakkt Blog

Expanding access to the global economy by building trust in and unlocking the value of digital assets

Adam White

Written by

COO @Bakkt; formerly @Coinbase exec, @USAirForce vet, @HarvardHBS alum

Bakkt Blog

Expanding access to the global economy by building trust in and unlocking the value of digital assets

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