Wednesday, January 20, 2021

Bakkt: Warehouse Custody is protected by a $125 million insurance policy

The Takeaway:

Just a few days after the launch of Bakkt's Warehouse Custody, the company has announced that a $125 million insurance policy protects BTC in their custody. Bakkt is all set to launch its physically-delivered daily and monthly bitcoin futures contracts on 23rd September.

ADVERTISEMENTKillerlaunch domains

In less than two weeks, Bakkt will start offering bitcoin daily and monthly futures. However, Bakkt’s warehouse custody went live on 6th September. The company has announced that bitcoin held in their custody is covered by $125 million insurance policy. 

After so many delays, the International Exchange-owned company is finally setting its foot in the crypto market. Bakkt will launch physically-delivered Bakkt Bitcoin Futures contracts on 23rd September. The announcement of insurance policy received positive feedback from the crypto community. $125 million are enough to cover more than 12,000 BTC at the current rate. Most of the crypto exchange use internal policies to cover unpredicted loses. 

However, Bakkt did not mention any details of the insurance company. COO of Bakkt, Adam White, in a medium post, wrote that the Bakkt Warehouse allows for the safe and secure storage of bitcoin, and he added that they are thrilled with the initial response from customers. 

Coincidently the day Bakkt started accepting bitcoin for its warehouse custody the same day a transaction worth a billion-dollar was noted, many from the crypto community linked the transaction to Bakkt. However, the company has not made any official comment over it. 

Announcement of $125 million insurance would help the company by providing a sense of security to current and potential investors. Let us know in comments what do you think about Bakkt’s insurance policy and its anticipated BTC futures contracts launch? 

ADVERTISEMENTBtrz jokerbtc 728x90 en

Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

William Botello
William Botello
William is a market research coordinator who believes that blockchain technology and cryptocurrencies can revolutionize the financial landscape. He completed his studies in Arts and Sciences from Arizona State University.

Leave A Reply

Please enter your comment!
Please enter your name here