Bakkt Works with Insurance Giant Marsh to Offer Crypto Custody Coverage Worth $500 Million

UTC by Bhushan Akolkar · 3 min read
Bakkt Works with Insurance Giant Marsh to Offer Crypto Custody Coverage Worth $500 Million
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As Bakkt serves over 70 clients for its crypto-custodial services, it has extended the insurance cover from the existing $125 million to above $500 million in a partnership with insurance broker Marsh.

ICE‘s Bitcoin Futures contracts platform Bakkt has joined with insurance broker Marsh to provide an additional insurance cover of $500 million. This announcement comes just at a time when Bakkt has on-boarded more than 70 clients for its custodial services.

Bakkt Collaborates with Marsh

Intercontinental Exchange (ICE) launched the Bakkt platform in August 2018 as its entry door in the crypto market. However, having received due clearance, it started offering physically-settled Bitcoin futures contracts from October last year. Bakkt attracts a large pool of institutional clients since it offers Bitcoin custodial solutions like the Bakkt Warehouse.

This is yet another important measure from Bakkt to improve the security of its platform and encourage legit players’ participation. This additional $500 million cover comes over and above Bakkt’s already existing $125 million insurance coverage.

On the other hand, Marsh has been working in the crypto space since 2018. Furthermore, in some security-inducing measures, Bakkt’s company president Adam White said:

“We’ve recently completed a SOC 1 Type I examination by KPMG and a SOC 2 Type II examination of the ICE infrastructure and enterprise-wide functions that the Bakkt Warehouse relies on by PricewaterhouseCoopers. These audited procedures and controls are essential to our institutional customers”.

Bakkt’s Focus on Retail Push

ICE’s Bakkt is also working on a mobile application focused on retail use for which Bakkt has also partnered with two unnamed financial institutions. As per the blog post, Bakkt is eyeing a potential user base of 30 million individuals. “This suite of enterprise loyalty and merchant products has powered the redemption of more than 1.5 trillion points, helping companies put loyalty points to work for consumers,” said Adam White.

Remember, one of the major objectives behind Bakkt’s launch was the mass adoption of cryptocurrencies. Bakkt has already partnered with retail giants like Starbucks for this. Using this new mobile application, Bakkt users will be able to make direct payments at Starbucks for their purchase. Note that Bakkt’s payment application will do the crypto-to-fiat conversion before making the final payment.

For its retail application development, Bakkt also acquired a loyalty rewards platform called Bridge2 Solutions. “Our enterprise loyalty products provide critical infrastructure to companies around the world and we’re proud to power thousands of programs that unlock digital assets for consumers,” White wrote.

Bakkt’s Former CEO Submits Documents to DoJ

U.S. Senator and former Bakkt CEO Kelly Loeffler have recently submitted fresh documents concerning her trading activities to the U.S. Department of Justice (DoJ). Loeffler was dealing with some wide accusations of insider trading activities.

A thid-party had accused that Loeffler and her partner had offloaded millions of shares after a closed-door Senate hearing on coronavirus in January 2020. To clarify this, Senator Loffler said she and her partner have acted appropriately under the spirit of the law.

“The documents and information demonstrated her and her husband’s lack of involvement in their managed accounts, as well the details of those accounts,” added he.

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