Bakkt has announced the launch date of its’ custody, termed as Warehouse. The update on twitter noted,
On Sept 6, our Warehouse will begin offering secure storage of customer bitcoin to prepare for the launch of Bakkt Bitcoin Daily & Monthly Futures when they launch on Sept 23
Bakkt was recently cleared for launch by the authorities in the US. These contracts will enable physical delivery of bitcoin with end-to-end regulated markets and ‘custody.’
Kelly Loeffler, the CEO of Bakkt, announced a launch date for its futures trading as early as 23rd September 2019. It is a milestone for Bitcoin for two reasons, the parent company of NYSE (New York Stock Exchange) backs it, and it offered a physically settled futures contract.
Why Is Custody as important as the platform itself?
Bakkt’s Warehouse is a regulated custodian for digital assets. It is similar to Coinbase custody and to some extent, Grayscale Trust. These institutions provide for secure storage of Bitcoin for its clients. Bakkt will begin its custody for ‘sophisticated institutional clients.’
In April, Bakkt acquired the Digital Asset Custody Company (DACC). DACC provides native support for 12 blockchain projects. While Bakkt is beginning its custody with Bitcoin, it is planning to expand its services to include other digital assets as well.
Since the Warehouse is insured and provides an institutional guarantee with trading, many hedge fund managers and brokers will look to join the program.
Do you think increased custody or institutional ‘hodling’ with affect Bitcoin’s price? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com