NEW YORK – Bakkt, Intercontinental Exchange’s bitcoin futures trading platform, has acquired the Digital Asset Custody Company (DACC) to “continue developing a secure digital asset storage solution.
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Bakkt COO, Adam White, stated DACC “share Bakkt’s security-first mindset,” and provides experience in developing its own established custody solutions.
“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.”
The amount Bakkt spent on the acquisition was not disclosed.
The company has also acquired BNY Mellon to facilitate a “geographically-distributed” private key storage, according to White.
“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,” stated White.
After being postponed for five months, a recent Bloomberg article stated Intercontinental Exchange (ICE) is turning to the New York Department of Financial Services (NYDFS) to receive a license.
The delays have been placed on cynicism from the Commodity Futures Trading Commission (CFTC), the regulatory body in charge of bitcoin futures.
The CFTC apprehensive take is due to how clients’ tokens will be stored and whether investors have enough safeguards against theft and manipulation.
ICE is hoping a regulatory stamp of approval from the NYDFS will conciliate the CFTC.
However, even with a state license, ICE will still need an endorsement by the CFTC on the Bakkt project.
Spokesmen for ICE and the CFTC declined to comment.
Bakkt hopes to solve two main problems they believe is holding bitcoin back from mainstream adoption; Institutional investors entering the sector, as well as, enabling “consumers and institutions to buy, sell, store and spend digital assets on a seamless global network.”
The project was initially slated for launch in November, but regulatory hurdles have plagued the platform since.
Bakkt CEO Kelly Loeffler stated the company is continuing to work with the CFTC, but they’re “not yet able to provide a launch date.”
“While we’re not yet able to provide a launch date, we’re making solid progress in bringing the first physical delivery price discovery contracts for Bitcoin to the U.S., where price formation will occur in federally regulated, transparent markets,” Loeffler said in a Medium post on March 29.