Bakkt is backed by ICE, which is the actual futures exchange Bakkt’s contracts are trading on. The company has announced that the Bitcoin (BTC) deposited at the Bakkt Warehouse is protected by a $125 million insurance policy. Bakkt Warehouse bitcoins have insurance policy worth $125 million.
Insurance policy news covering customer deposits erase another concern that Bakkt hopes to lure for institutional investors.
Last week, the company announced the launch of Bakkt Warehouse which is ready to act as a custodian, allowing for the safe, secure storage of bitcoin.
The firm began accepting deposits and withdrawals on September 6. Although, the scheduled launch was on September 23 of its futures products.
“It is regulated by the New York State Department of Financial Services (NYDFS) as a Limited Purpose Trust Company, providing customers with a Qualified Custodian of Bitcoin,” the company wrote on Twitter.
Bakkt Warehouse bitcoins have insurance policy worth $125 million. The main distinction between the offer of Bakkt and the platform of CME and CBOE is that all trades will be settled in Bitcoin once their contracts expire.
“We’re thrilled with the initial interest we have seen in the Bakkt Warehouse, and continue to onboard new customers and accept bitcoin deposits”, Adam White said.
Following the successful launch of the Bakkt Bitcoin Futures contracts on 23 September, the company will create the first fully regulated marketplace specifically designed to meet the needs of institutional firms and their clients.