Bakkt Expands Insurance Coverage and Increases Client Base
Bakkt adds an extra $500 million to its insurance policy and welcomes 70 new clients.
In line with its growing list of institutional clients, the Bitcoin warehouse Bakkt has secured its custody business with an extra $500 million for its insurance policy.
The official post explains how the company recently onboarded over 70 clients for its custodial services, giving them access to insurance coverage worth more than $600 million overall.
Adam White, the company’s president, revealed that Bakkt had partnered with the insurance broker Marsh to provide more extensive coverage. The $600 million would be an addition to the custodian’s existing $125 million coverage.
Marsh has been a part of the cryptocurrency space since 2018 and currently works with Crypto.com and Ledger for insurance.
Bakkt is fully compliant with all its auditing requirements. The company completed a SOC 1 Type I Examination conducted by the KPMG, followed by a SOC 2 Type II Examination by PricewaterhouseCoopers regarding the company’s functions as an enterprise. This includes the infrastructure hosted by Intercontinental Exchange, its parent firm.
Their post revealed that their commitment to audited procedures and controls led Tagomi, one of the most popular crypto brokers, to approach the company as their Bitcoin custodian of choice.
In addition, the company is working full force to creating a retail-focused mobile app. Bakkt is eyeing a user base of more than 30 million individuals after establishing partnerships with two financial institutions that they have yet to reveal.
The development of their retail app is tied to the company’s prior acquisition of Bridge2 Solutions, a loyalty rewards platform. Before the acquisition, Bridge2 Solutions collaborated with other companies to help redeem more than 1.5 trillion points.
Bakkt states that this partnership with one of the leaders in the loyalty space would “provide critical infrastructure to companies around the world.”
As a digital currency warehouse, Bakkt aims to create an open platform for cryptocurrency services across the board, including trading and warehousing. It was first launched in September 2019 and followed up with its custody services to all institutions around the world in November 2019. The company is currently based in New York.