Bakkt Revamps Crypto Custody, Widening Horizons with New Cryptocurrencies

Key Insights:

• Bakkt unveils a revamped crypto custody platform, prioritizing top-tier security and adding six new cryptocurrencies, including Dogecoin and Litecoin.
• Bakkt integrates Dogecoin, Bitcoin Cash, and more to expand its crypto horizons, bolstering its platform with institutional-grade security features.
• Bakkt’s strategic upgrade introduces advanced custody features and broadens its crypto portfolio, emphasizing security in the dynamic digital asset market.

Bakkt Holdings has rolled out a significant update to its Bakkt® Custody platform, showcasing its dedication to improving the crypto custody sector. Announced on November 15, this enhancement addresses the growing demand for more robust solutions in digital asset storage. Significantly, the platform has expanded its offerings to include support for six new cryptocurrencies, broadening the scope for investor participation.

Revolutionizing Crypto Custody with Strategic Upgrades

The recent overhaul of Bakkt’s platform represents a significant shift in crypto custody beyond mere updates. This transformation brings forward cutting-edge features like tailor-made security protocols and superior reporting functions, all under the banner of Bakkt Trust Company LLC.

Functioning with the regulatory guidance of the New York Department of Financial Services, the platform maintains a high bar for institutional-level security. It utilizes advanced methods such as cold storage and multi-signature technologies to ensure the safety of cryptographic keys.

Additionally, Bakkt’s dedication to safeguarding assets is all-encompassing. The company guarantees its digital assets are fully insured and undergo rigorous third-party scrutiny. Such a thorough method is evident in its all-encompassing security and compliance policies, crafted to be comprehensive and exacting.

Expanding the Crypto Portfolio: Enhancing Investor Choices

Bakkt’s latest update significantly expands its cryptocurrency offerings. Beyond Bitcoin and Ethereum, the platform now includes Dogecoin, Bitcoin Cash, Ethereum Classic, Litecoin, USD Coin, and Shiba Inu. Slated to be available from December 2023, this expansion brings the custody services in line with Bakkt® Trading, easing client transitions across different platforms.

This expansion into new cryptocurrencies aligns with Bakkt’s third-quarter financial results for 2023. The report showed a reduced adjusted EBITDA loss of $21.6 million, down 30 percent from the previous year. Despite this, the company’s cryptocurrency revenue jumped to $191.8 million, primarily driven by acquiring Apex Crypto. The overall quarterly revenue reached $204.8 million, though there was a 28 percent drop in assets under custody year-over-year, totaling $505.7 million.

Forging Ahead: Partnerships and Global Expansion

Bakkt is proactively engaging in new collaborations to bolster its role in the cryptocurrency custody field. It’s gearing up to offer clearing and custodial services to EDX Markets, an emerging crypto exchange supported by Wall Street. In addition, the company has broadened its customer base in its custody operations, securing partnerships with prominent players such as Unchained and LeboBTC.

Looking to the future, Bakkt is setting its sights on enlarging its international reach, with plans to penetrate markets in Latin America, Asia, and Europe by year’s end. This global expansion strategy aims to elevate Bakkt’s profile in the worldwide cryptocurrency sector significantly.

The re-launch of Bakkt’s custody platform, with the introduction of new cryptocurrencies and a focus on enhancing security and functionality, reinforces its standing in the ever-evolving crypto environment. The firm’s commitment to providing a secure, regulated, and varied platform aligns with the changing requirements of contemporary traders and financial institutions, representing a significant step forward in the crypto custody service arena.

Through these efforts, Bakkt strives to position itself as a leading figure in the industry, focusing on safeguarding security and client assets to avoid scenarios like the FTX collapse. 

Gavin Michael, President and CEO of Bakkt, underscores the firm’s resolve, highlighting its dedication to client security and fund integrity.

“Recent developments have underscored the critical importance of reliable crypto custody. At Bakkt, we are proud to be a trustworthy provider, always prioritizing the security of our client’s funds without ever mixing them.”

Bakkt’s strategic steps in enhancing its platform and broadening its cryptocurrency offerings reflect a keen understanding of the market’s needs.