Digital asset platform Bakkt has today been selected by Nexo to take custody of its holdings of Bitcoin and Ethereum assets using the company’s regulated custodian.
The holdings will be stored in the ‘Bakkt Warehouse’, which comprises a combination of online (‘warm’) and offline (cold’) digital asset storage that has been ‘air-gapped‘.
Additionally, in order to minimise the risks associated with holding the assets on-chain, Bakkt will regularly ‘rebalance’ the assets between warm and cold storage.
We are excited to announce our partnership with regulated digital assets institution @NexoFinance. See the full press release here: https://t.co/FJF27bzM8C pic.twitter.com/tqDTnubh9u
— Bakkt (@Bakkt) January 19, 2022
In order to safely secure customer holdings, Nexo, Celsius and other exchanges like crypto.com all use third-party custodial services like Bakkt to maintain a semblance of control over the assets.
An array of institutional investors also use third-party custodians such as Grayscale to secure their assets within a more robust infrastructure.
Bakkt, a digital asset platform, has made major strides in the crypto space following a $300m Series B raise last March.
It currently offers users crypto rewards, trading and payments on its app alongside custodial services for institutions and enterprises. To bolster its offering, it recently partnered with Google Pay to enable crypto payments using a Bakkt card -leading to a reported revenue increase of 38% last November.
George Manolov, Business Development Executive at Nexo, spoke positively of the level of infrastructure provided by Bakkt and its outlook on digital asset regulation.
“As a global digital assets institution, Nexo acknowledges the need for a trusted partner to bring an extra level of security and credibility to our clients’ cryptocurrencies,” he said.
“We recognised that Bakkt’s infrastructure and regulation-first approach to crypto was a natural fit and we’re confident that this partnership will benefit all our clients and expand Nexo’s ability to service the unprecedented institutional demand for cryptocurrencies.”
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.