Bitcoin, Crypto currency, Blockchain

Bitcoin exchange Bakkt buys crypto-Custody business for more security

f48eb813ed11531368cc192cd0349ca0 - Bitcoin exchange Bakkt buys crypto-Custody business for more security

Bitcoin exchange Bakkt buys crypto-Custody business for more security

Home News Bitcoin exchange Bakkt buys crypto-Custody business for more security

Of
Marcel Knobloch –
01.05.2019

The launch of the Bitcoin exchange Bakkt is delayed more and more. Reason for this concerns the Commodity Futures Trading Commission (CFTC) with regard to adequate security and a consistent regulatory. In order to meet the demands of Bakkt buys a company, that Custody offers solutions for digital Assets.

Bakkt, the Bitcoin trading platform of the Intercontinental Exchange, has acquired the Digital Assets under Custody Compancy (DACC). The company shall safeguard the digital Assets of their customers, as well as the private keys from Bitcoin and co. for sure. By the provision of a safer custody solution Bakkt, to minimize the risk of loss of crypto-currencies and in order to satisfy a basic need of institutional and private investors. Adam White, Bakkts Chief Operating Officer (COO) sees it as an important step to acquiring new large customers (freely translated):

With the same commitment, a new Standard for secure storage of digital Assets you specify, we are pleased to inform you that we have purchased the Digital Asset Custody Company (DACC). DACC shares our safety and security awareness and brings a wealth of experience with secure, scalable storage solutions for institutional clients.

Bakkt currently uses a mixture of a Cold Wallet and Hot Wallets, are connected to the Internet, in order to secure customer deposits, while the majority is stored in Cold Wallets (freely translated):

The bulk of the assets is offline stored in Cold Wallets, which are insured with one of the leading global insurance carriers direct insurance in the amount of 100,000,000 USD. Both of these Wallet architectures, a set of security measures On-Chain and Off-Chain, to the crypto-protect graph key, including the enforcement of controls with multiple signatures.

Client funds are also protected by layers of automated checks, including Multi-factor authentication, Whitelisting of destination addresses and role-based permissions.

Furthermore, Bakkt is seeking strategic alliances with traditional actors to create an environment in which institutional investors feel comfortable and all of the obstacles to getting started off. The Startup is working with BNY Mellin, a secure storage solution for private keys to offer have implemented a geographically-distributed memory (loosely translated):

BNY Mellon has a long Tradition of safeguarding the assets of institutional clients such as Hedge funds, asset managers and Broker-dealers, and we look forward to working with you.

Featured Image: Mikko Lemola | Shutterstock

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