Bakkt and Galaxy Digital to Offer Institutional Crypto Trading and Custodial Services

| Updated
by Bhushan Akolkar · 3 min read
Bakkt and Galaxy Digital to Offer Institutional Crypto Trading and Custodial Services
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Bakkt and Galaxy Digital will work together to offer the best-in-class services for its clients while ensuring seamless onboarding experience along with trade execution and storage facilities.

The cryptocurrency market is witnessing a major push towards institutional adoption. Looking at the institutional demand, financial service providers are making every possible attempt of offering safe and secure services. ICE‘s Bakkt Digital Assets platform has now joined hands with crypto investment management company Galaxy Digital for offering white-label services to asset managers like buying, holding and storing Bitcoins.

Since October 2019, Bakkt is already providing regulated Bitcoin futures services to clients. Besides, Bakkt also has its own institutional-grade custodial solution for secure storage of BTC called the Bakkt Warehouse.

On the other hand, Mike Novogratz‘s Galaxy Digital offers diversified crypto financial services. With this collaboration, Galaxy Digital Trading (GDT) will provide all trading services and related functionalities. It will do this by leveraging its existing plugins to 30 different crypto-trading venues.

Thus, combining the best-in-class service of both the companies, they will help institutional clients offering a seamless onboarding experience along with trade execution and storage facilities. Tim Plakas, Head of Sales at Galaxy Digital Trading, said:

“Asset managers and hedge funds considering this service can be assured by the high standards we hold as a publicly-traded company with audited, public financial statements and an institutional-sized balance sheet. We designed this partnership to service the uptick in demand our two firms have received from traditional asset managers seeking access to physical bitcoin”.

“These funds expect the same caliber of market knowledge and trade execution expertise in BTC as they would expect from any established traditional finance desk, and Galaxy provides that, while Bakkt delivers the high level of regulatory-compliant security required for storing digital assets,” added he.

Bakkt Offers Insurance Safety Net for Storing Digital Assets

Bakkt has been working strongly to offer better customer services and ensure that its client funds are protected. The platform also offers insurance cover facilities for all the Bitcoin’s stored in the Bakkt Warehouse. Looking at the higher institutional demand, Bakkt recently extended its insurance cover to over $500 million by partnering with brokerage giant Marsh.

John Conneely, Head of Custody Business Development at Bakkt, said:

“Alongside our adoption of safekeeping requirements that are unique to the digital asset class and its infrastructure, the Bakkt Warehouse uses the same best-in-class, trusted enterprise security framework that protects ICE’s dozen exchanges around the world, including the New York Stock Exchange. As one of the largest trading operations in the digital asset space, Galaxy Digital’s execution expertise and Bakkt’s custody solution are highly complementary.”

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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