Bakkt has expanded its Bitcoin custody offering to all institutions beyond just supporting those trading on Bakkt's Bitcoin futures exchange. According to a blog post today, this is because it has now received authorization from the New York Department of Financial Services (NYDFS) to do so.
The first three insitutions to start using this service will be Pantera Capital, Galaxy Digital, and Tagomi. Bakkt plans to onboard new institutions in the next few weeks.
Bakkt is a Bitcoin futures exchange that was launched by Intercontinental Exchange, the parent company of the New York Stock Exchange. It launched to a slow start but volumes on its exchange have been steadily building up, and tend to increase when the Bitcoin market sees increased volatility.
In the blog post, Bakkt pointed out that it uses biometrically-controlled bank-grade vaults and enterprise-grade security modules to ensure that customer funds are kept secure. This is key in light of the major crypto exchange hacks that have occurred in the past.