Bakkt Holdings Navigates Crypto-Custody Potential with Enhanced Bakkt Custody Platform
Refocusing Strategy Towards Digital Asset Custody
Bakkt Holdings, once operating on a diversified blockchain strategy, is now channeling its resources to specialize in cryptocurrency custody. In a bid to align with the growing demand for digital asset safekeeping, Bakkt has brought into focus its Bakkt Custody platform, revamping its capabilities to reinforce its stance in the crypto custody sector.
Integrated Support for a Wider Spectrum of Tokens
Anchoring the shift in focus, Bakkt has reinvented its Custody platform with comprehensive support for a more extensive array of digital tokens. Upon its official relaunch, in addition to the already supported Bitcoin and Ether, the platform extended its arm to accommodate six new cryptocurrencies, including Litecoin, Ethereum Classic, Bitcoin Cash, Dogecoin, USD Coin, and the rapidly popularized Shiba Inu token.
Amplified Security Elements and Advanced Features
Instilled with cutting-edge features, the updated Bakkt Custody platform champions newfound operational facets like segregated on-chain wallet addresses and enriched reporting features. Run under the aegis of Bakkt Trust Company LLC, a custodian credentialed by the New York Department of Financial Services (NYDFS), the platform remains committed to delivering bank-grade security standards.
Bakkt’s drive to adhere to the stringent demands for crypto asset security manifests in an insurance cover for digital assets, subjecting them to systematic audits by independent third parties and bolstered by rigorous security and operational regulations.
CEO’s Pledge to Glaston-Grade Crypto-Stewardship
Steering this strategic revamp, Bakkt’s President and CEO, Gavin Michael, highlighted the platform’s unwavering commitment to providing quality crypto custody services. Focused on staying compliant with regulatory demands, he underscored the importance of responding responsibly to the continued proliferation of digital assets. The company expects to integrate these new token capabilities into the platform by December 2023 and has longer-term prospects to include even more coins by early 2024.
Q3 2023 Performance and Acknowledgment of Excellence
Amidst this significant strategic shift, Bakkt reported a Q3 2023 adjusted EBITDA loss of $21.6 million, alongside a decrease in compensatory and beneficiary expenses. However, the company’s efforts received significant affirmation when it was honored with the Best Digital Asset Custodian award at the 2023 Digital Asset Awards, a testament to its extensive work on its Custody platform.
Active Forays into Strategic Partnerships
With sights set on burgeoning its standing in the crypto market, Bakkt is actively scouting alliances, and notably, it has plans in motion to undertake clearing and custodial roles for EDX Markets. The surge in traditional financial institutions’ interest in digital asset custody, illustrated by the likes of BNY Mellon and DZ Bank setting foot into the domain, further underscores this transition phase’s significance in the crypto industry.