Bakkt to Acquire DACC & Partner With BNY Mellon

DACC acquisition will help Bakkt to develop a solution for secure storage of assets & BNY Mellon will help to create geo distributed system of private keys
30 April 2019   317

Institutional Bitcoin Futures Platform Bakkt announced the purchase of Digital Asset Custody Company (DACC), and reported on the partnership with a large American bank BNY Mellon.

As operational director Adam White writes in the company's blog, Bakkt acquired the DACC to further develop a solution for secure storage of digital assets. According to him, the DACC team shares the desire of Bakkt to put security at the forefront, and will also be able to share valuable experience in developing secure and scalable custodial solutions.

He also made it clear that with the purchase of DACC, the Bakkt offer could be expanded to other cryptocurrencies.

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.

Adam White

COO, Bakkt

In order to solve the problem of storing assets, Bakkt also entered into a partnership with BNY Mellon, with which it is working to create a geographically distributed system of private keys.

BNY Mellon has a longstanding history of safeguarding the assets of institutional clients such as hedge funds, asset managers, and broker dealers, and we’re excited to work with them.

Adam White

COO, Bakkt

Additionally, Bakkt has provided insurance coverage for assets that it will store in cold wallets.

Bakkt uses both warm (online) and cold (offline) wallet architecture to secure customer funds. The majority of assets are stored offline in air-gapped cold wallets that are insured with a $100,000,000 policy underwritten by leading global insurance carriers. 

Adam White

COO, Bakkt

Adam also reported about cybersecurity program of his company.

Bakkt leverages one of the world’s most sophisticated cybersecurity programs, and the same systems that protect the New York Stock Exchange. Threats are identified from a “red team first” perspective and managed by a global team of security specialists. These experts collaborate closely with law enforcement and the global intelligence community to identify, analyze and prevent attempts at inbound intrusion.

Adam White

COO, Bakkt

As a result, Mr. White said, a program continuously adds controls to prevent the unauthorized access, disclosure, destruction, modification, or disruption of company data and prioritizes protections from a threat-objective driven approach.

CFTC to Approve LedgerX's Deliverable BTC Futures

At the same time, another platforms such as Bakkt, ErisX and Seed CX still awaiting regulatory approval
26 June 2019   65

Cryptocurrency derivatives provider LedgerX LLC has received a license from the Authorized Derivatives Market (DCM) from the US Commodity Futures Trading Commission (CFTC), which will allow it to launch the country's first bitcoin futures.

Deliveries for deliverable futures are made in the underlying asset, not in fiat funds. Thus, LedgerX outstripped the Bakkt, ErisX and Seed CX platforms, which are still awaiting regulatory approval.

At the same time, LedgerX intends to launch the Omni platform for trading options, swaps, and bitcoin futures for retail investors, since at the moment it does not see enough interest from institutional market participants.

However, it should be added that some experts have already expressed fears that the nature of the license received will not allow LedgerX to provide margin tools to customers, and Bakkt should have such functionality.

Recall about the intentions to obtain the appropriate permission and overtake competitors LedgerX said in April.