Bakkt Partners With Galaxy Digital to Launch White Glove Service
According to Tim Plakas of Galaxy Digital that through this partnership, they will be providing service to all those traditional asset managers who have been trying to gain access to Bitcoin. Now both the firms will offer a completely safe and properly regulated way to provide physical access to Bitcoin.
Our partnership with Galaxy Digital makes it easier for asset managers to invest in bitcoin, following a spike in demand seen over the last quarter https://t.co/19FF2d1LhE
Demand for crypto-asset exposure cause partnership with Bakkt
According to John Conneely, the custody head of Bakkt, the major reason behind establishing this partnership is the huge institutional demand for Bitcoin exposure. It has been reported that Galaxy Digital Trading was able to secure $1 billion in digital asset volume in just the first quarter of 2020. Under this partnership, Galaxy Digital will be seeking liquidity from across 30 different market makers. According to Plakas, the firm will be assuring the different asset managers and hedge funds for completely high-standards. This will include the public financial statements and the institutional-sized balance sheet as well.
Warm and cold storage to secure funds
It has been reported that ever since Bakkt has launched its warehouse, it already has a huge number of clients approximately 70 for the custody service. The firm uses a combination of both warm and cold storage in order to secure the funds. All the funds which have been stored in its warehouse are covered with an insurance policy of $125 million. Not only this, but it also offers its customers to have additional coverage of more than $500 million.
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