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Along with cryptocurrency custody, Bakkt will also offer balance reshuffling facility to Nexo users to mitigate risks.
Nexo finance, the leading regulated institution for digital assets, has recently entered into a partnership with cryptocurrency trading platform Bakkt. As per the report, Bakkt will serve as Nexo’s regulated custodian for customers’ Bitcoin and Ethereum holdings.
Furthermore, Nexo shall be storing the custody crypto assets in the Bakkt Warehouse for safe and secure storage of BTC and ETH. Besides, along with holding the crypto assets on-chain Bakkt will help Nexo in minimizing the risks. It will do so by regularly rebalancing the assets between warm and cold storage.
Speaking of the development, Dan O’Prey, Chief Product Officer, Crypto at Bakkt said:
“The cryptocurrency market continues to expand at a robust pace, leading reputable crypto companies to diversify custody of assets. We are pleased that Nexo has chosen the Bakkt Warehouse as a trusted solution. As we build upon our partnerships with businesses and expand our network of operations and revenue, secure custody continues to be a pillar of Bakkt’s strategy, leveraging state-of-the-art physical and cyber security, institutional grade technology and governance, and backed by insurance.”
Bakkt to Provide Nexo with Secure Wallet Architecture
Established three years back in 2019, the Bakk Warehouse offers both – hot (online) and cold (offline) – cold storage solutions. Bakkt said that it will be providing an additional layer of protection for Nexo users.
Bakkt’s warm and cold wallets have been built using a secure wallet infrastructure along with multi-zone physical security and bank-grade vaults. Speaking of this development, George Manolov, Business Development Executive at Nexo said:
“As a global digital assets institution, Nexo acknowledges the need for a trusted partner to bring an extra level of security and credibility to our clients’ cryptocurrencies. We recognized that Bakkt’s infrastructure and regulation-first approach to crypto was a natural fit and we’re confident that this partnership will benefit all our clients and expand Nexo’s ability to service the unprecedented institutional demand for cryptocurrencies as well as individuals’ growing transaction volumes.”
Third-party custodial solutions are often used by crypto exchanges to secure their clients’ funds. Besides, regulated products further help to build institutional trust.
Along with enterprise-grade crypto custodial solutions, Bakkt also offers other services like crypto rewards, trading and payments via its app. Bakkt has also partnered with payment platforms like Google Pay to facilitate crypto payments using a Bakkt card.