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Galaxy Digitalâs trading engine will be paired with Bakktâs custody services in a collaborative effort to meet institutional demand for Bitcoin.
The Intercontinental Exchangeâs digital asset custody and derivatives platform Bakkt has partnered with crypto asset manager Galaxy Digital to launch a âwhite gloveâ service for institutions seeking Bitcoin (BTC) exposure.
The collaboration will see Galaxy Digital Tradingâs (GDT) matching engine and trading platform offered alongside Bakktâs digital asset custody services.Â
âWe designed this partnership to service the uptick in demand our two firms have received from traditional asset managers seeking access to physical Bitcoin,â said Galaxy Digitalâs Tim Plakas.
âTogether, Galaxy Digital and Bakkt offer a safe, efficient, and well-regulated route into physical bitcoin access,â Plakas added.
Galaxy Digital and Bakkt team up
In an interview with Bloomberg, Bakktâs custody head John Conneely said the partnership was established in response to strong institutional demand for crypto asset exposure
The partnership will see GDT source liquidity from over 30 market makers, with trading taking place 24 hours a day, 365 days per year. GDT generated over $1 billion in digital asset volume during the first quarter of 2020 spanning its spot, lending, derivatives, and structured crypto products.
âAsset managers and hedge funds considering this service can be assured by the high standards we hold as a publicly-traded company with audited, public financial statements and an institutional-sized balance sheet,â noted Plakas.
Bakkt warehouse
Since launching its âBakkt Warehouseâ last year, the ICE subsidiary has on boarded over 70 clients for its custody services.
Bakkt uses a combination of warm and cold storage to secure funds, with the majority of capital stored offline. Funds stored in the Bakkt warehouse are covered by a $125 million insurance policy, with customers able to purchase more than $500 million in additional coverage.
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