Intercontinental Exchange Bakkt’s digital asset and derivative custody platform has partnered with crypto asset manager Galaxy Digital to launch a ‘white glove’ service for institutions seeking Bitcoin Evolution exposure (BTC).
The partnership will enable the Galaxy Digital Trading (GDT) matching engine and trading platform to be offered alongside Bakkt’s digital asset custody services.
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“We designed this partnership to address the growing demand our two companies have received from traditional asset managers seeking access to Bitcoin,” said Tim Plakas of Galaxy Digital.
“Together, Galaxy Digital and Bakkt offer a secure, efficient and well-regulated route to access Bitcoin,” added Plakas.
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In an interview with Bloomberg, Bakkt’s chief custodian, John Conneely, said the partnership was established in response to strong institutional demand for cryptoactive exposure.
The partnership will show GDT getting liquidity from more than 30 market makers, with trading taking place 24 hours a day, 365 days a year. GDT generated over $1 billion in digital asset volume during the first quarter of 2020, covering its cash products, loans, derivatives and structured crypto products.
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“Asset managers and hedge funds who consider this service can be assured of the high standards we have as a company, with public and audited financial statements and an institutional-size balance sheet,” Plakas said.
Since the launch of its “Bakkt Warehouse” last year, the ICE subsidiary has shipped more than 70 clients for its custody services.
Bakkt uses a combination of offline and online storage to secure funds, with the majority of capital stored offline. Funds stored in Bakkt’s warehouse are covered by a $125 million insurance policy, and clients can purchase more than $500 million in additional coverage.