- The new trading service and Bitcoin custody platform will incorporate the best expertise from the two companies.
- Institutional traders will benefit from Galaxy Digital knowledge in trade execution and Bakkt regulatory compliance.
A couple of key cryptocurrency industry players are partnering to launch a trading and custody service that has been designed to cater to the needs of institutional traders. Bakkt, which is a subsidiary of the International Exchange (ICE), and Galaxy Digital, a cryptocurrency investment bank, have a plan to launch a “white-glove” service to be used by hedge fund managers to create viable positions and store Bitcoin (BTC).
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The two firms entered into the partnership in order to meet the increased demand for access to physical Bitcoin by “traditional asset managers.” The new platform will benefit from Galaxy Digital’s expert knowledge in the market and trade execution as well as the regulatory compliance by Bakkt. A statement by Tim Plakas, the Head of Sales at Galaxy Digital Trading said:
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. Together, Galaxy Digital and Bakkt offer a safe, efficient, and well-regulated route into physical Bitcoin access, one that has been already proven successful in the macro hedge fund space.
Bakkt custody service referred to as Bakkt Warehouse consists of both online and cold storage for Bitcoin. It boasts of a $215 million insurance policy and has integrated “the same best-in-class, trusted enterprise security framework that protects ICE’s dozen exchanges around the world, including the New York Stock Exchange,” according to John Conneely, Head of Custody Business Development at Bakkt.
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