According to the post, the Intercontinental Exchange (ICE)-led entity has taken over the state of the art cryptocurrency custodian, Digital Asset Custody Company (DACC), known to provide military standard financial storage facilities to various institutions, in a bid to strengthen its own security-centered storage solution.
Details of the DACC Acquisition
Bakkt is looking to reap benefits from the experience DACC has gained over its years of providing world-class custody solutions. Moreover, since the exchange at the moment only supports Bitcoin and is looking forward to adding other digital currencies, Adam White suggests in the blog post that DACC might prove to be of great help to them in that aspect as well. He wrote:
“As we look to scale and support custody of additional digital assets, DACC’s native support of 13 blockchains and 100+ assets will serve as an important accelerator, and we’re pleased to welcome Matthew Johnson, Adam Healy, and the entire DACC team to Bakkt.”
Apart from acquiring DACC, Bakkt has also partnered with an international bank, BNY Mellon. The main motive behind the partnership is using BNY Mellon’s expertise in storing client assets to develop private key storage facilities in various locations around the world.
Moreover, Bakkt, being an active provider of both hot and cold wallets for the security of client funds, has succeeded in acquiring insurance for its cold wallets. According to White, the cold wallets are now safeguarded with a $100,000,000 insurance policy.
Lastly, White also shared further information on Bakkt’s continuous efforts to get hold of a custodian license from the New York Department of Financial Services following which the exchange hopes to provide regulated storage facilities for crypto assets.