Bakkt Grows Client Base for Custody Service
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  • Bakkt has onboarded over 70 institutional investors onto its warehouse custody solutions and its customers can now purchase insurance coverage worth $500 million. 
  • The blockchain-based company is set to release the Bakkt Mobile App this summer for which retail investors can have an early access to. 
  • The app will enable users to buy, sell and trade in digital assets including cryptocurrency as well as rewards points.

The current unprecedented times are hardly conducive to business boom. With the ongoing crisis sparked by COVID-19, global economies are experiencing recession. 

However, some businesses – particularly fintech firms – continue to thrive. For instance, Bakkt, the Intercontinental Exchange-backed Bitcoin platform used for trading, spending and storing, revealed that its business is expanding despite the economic slump.

In a summary update called ‘Bringing Digital Assets Mainstream’ detailing the achievements of the firm, president Adam White highlighted that Bakkt unlocked digital assets for more than 70 institutional investors. The Bakkt Warehouse will now provide regulated Bitcoin custody solutions along with the delivery of Bitcoin futures and Options contracts.

Additionally, it partnered with insurance broker Marsh to offer clients more than $500 million in additional insurance coverage.

“Beyond the $125M of insurance already in place at the Bakkt Warehouse, customers can now purchase more than $500M in additional insurance coverage, subject to underwriting criteria,” White wrote.

White further said that the firm has recently completed a SOC 1 Type I examination by KPMG and a SOC 2 Type II examination of the ICE infrastructure and enterprise-wide functions. White wrote:

“These audited procedures and controls are essential to our institutional customers and led Tagomi, one of the most popular crypto prime brokers, to select Bakkt as their preferred bitcoin custodian. Tagomi customers can now custody with Bakkt for 0.1% per year while retaining access to best-trade execution and settlement via the Tagomi platform.”

Making crypto the new normal by launching the consumer app

Given that the company has had ambitions to make its technology mainstream and user-friendly, it has been working to launch an app that would allow users to buy and sell digital assets including cryptocurrency, cash as well as rewards points.

The app is designed to aid consumers to store and spend cryptocurrency with incentives such as earning retail loyalty points and airline miles. The app development is tied to Bakkt’s acquisition of Bridge2 Solutions, a loyalty rewards platform, which allows customers to redeem their points for travel, merchandise, and gift cards through Bakkt’s platform. 

“This suite of enterprise loyalty and merchant products has powered the redemption of more than 1.5 trillion points, helping companies put loyalty points to work for consumers,” he continued.

“Our enterprise loyalty products provide critical infrastructure to companies around the world and we’re proud to power thousands of programs that unlock digital assets for consumers.”

White continued that retail investors will be able to sign up for early access to the Bakkt Mobile app. The use of this app could potentially unravel the true value of digital assets for consumers as well as retailers.

White’s statement echoed Bakkt’s CEO, Mike Blandina’s thoughts expressed in a Medium post  in March which stressed on onboarding as many retail investors as possible through the Bakkt mobile App. 

“Bakkt gives users control over their digital assets. Whether it’s miles from your favorite airline, loyalty points from the local grocery store, or bitcoin you’ve purchased, the Bakkt app enables you to aggregate all of these assets into a single digital wallet,” Bladina said. 

“In just a few taps you can use those assets to shop at your favorite merchants, send them to family and friends, or convert them to cash. We believe that you hold more value than you realize and we’re here to help you track, spend, and send your digital assets however you want.

I’m excited at our potential to unlock nearly $1 trillion of digital assets when the Bakkt app launches this summer.”

Boosting its business through partnerships

White confirmed that it is also teaming up with two big financial institutions that plan to leverage its loyalty and rewards product. 

“We recently partnered with two of the largest financial institutions, leveraging these products to enable an additional 30+ million consumers to redeem their points for travel, merchandise, and gift cards through our platform,” he added.

Furthermore, one can pay for their cup of joe through crypto. The company’s partnership with Starbucks is also moving forward. A Bakkt Cash option is live on the Starbucks app in a bid to make crypto payments more mainstream starting with the coffee giant.