Bakkt Collaborates with Galaxy Digital to offer Bitcoin Trading and Custody for Institutions
Derivative Trading and Custody platform Bakkt has teamed up with investment management firm Galaxy Digital to launch and custody facility and trading for digital assets.
The Galaxy Digital will provide market access and trading infrastructure via its affiliate Galaxy Digital Trading in this new partnership whereas the Bakkt Warehouse which has been regulated by the New York State Department of Financial Services will serve as a custodian of the funds.
Bakkt’s Expansion plans as Custodian
While underlining Bakkt’s capability as a custodian, John Conneely, Head of Custody Business Development at Bakkt commented:
“Bakkt is using the same “trusted enterprise security framework that protects ICE’s dozen exchanges.” He asserted that the partnership with Galaxy digital will become one of the largest trading operations in the digital asset space.
Bakkt has been expanding its services since 2019 after launching its Bitcoin features platform. As part of its expanding policy, it has teamed up with more than 70 firms at its Bakkt Warehouse. Bakkt offers both Cold wallet and Warm wallet facility but most of its customers prefer to store funds in its cold wallet.
Digital Galaxy Trading will be involved in the trading and market access as it can source liquidity from more than 30 locations and providers. It will also address risks of market segmentation and wider spreads affecting counterparty performance.
Announcement from the Digital Galaxy Trading states that it has traded more than $ 1 billion across Bitcoins and other digital assets in the first quarter of 2020. It has achieved this target by functioning 24/7 globally.
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 size the balance sheet."
He added that they had designed it to service the uptick in demand our two firms have received from traditional asset managers seeking access to Physical Bitcoin."
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CBW - External Analyst