Bakkt: $125 million insurance policy for bitcoin custody
Bitcoin

Bakkt: $125 million insurance policy for bitcoin custody

By Matteo Gatti - 9 Sep 2019

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The bitcoins deposited at the Bakkt Warehouse custody service will be protected by an insurance policy worth $125 million. This was announced by the platform’s official Twitter profile.

 

Bakkt’s BTC futures will arrive on September 23rd and, to facilitate a smooth launch, the company has been offering bitcoin custody services to customers since September 6th.

The custody service required the approval of the Department of Financial Services of the State of New York for the creation of Bakkt Trust Company and Warehouse.

Bakkt, a $125 million insurance policy

The arrival of futures has been postponed several times due to the lack of CFTC’s approval. From that moment on, however, things have gone well and everything seems to be ready for the launch on September 23.

This news concerning the insurance policy that covers clients’ deposits removes another concern that could keep institutional investors away, clients that Bakkt hopes to attract.

Futures, born in collaboration with ICE Futures U.S. and ICE Clear U.S., will be both daily and monthly and will allow the physical delivery of bitcoins in a fully regulated market. These futures contracts will thus be settled in BTC, and not in dollars like the previous ones.

As confirmed by Bakkt’s previous announcement, the entire business is regulated by the New York State Department of Financial Services (NYDFS). If the launch is successful, it will be the first platform to offer real bitcoin futures with delivery at the end of the contract.

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