Bakkt Buys DACC, Forms Alliance with BNY Mellon to Enhance Private Key Crypto Custody Security
In a Medium post published Monday, April 29, 2019, the Chief Operations Officer, Adam White announced Bakkt’s acquisition of the Digital Asset Custody Company (DACC), a purpose-built crypto custodian devoted to hedge funds, reports Coin Desk.
Upon visiting the blog post, White shares the similarities between both firms and how the acquisition was a natural step to take. Here’s as per his words:
“DACC shares our security-first mindset and brings extensive experience offering secure, scalable custody solutions to institutional clients. The team’s experience integrating multiple blockchains and operating cutting-edge consensus mechanisms is a valuable addition to our team and future product line.”
He continued on to emphasize scalability and support of crypto-based custodians and how DACC’s 13 blockchains and over 100 assets will play a significant role in achieving their goals – expressing immense joy in onboarding the DACC team to Bakkt.
When White expounded on the risks of the crypto sphere, he went onto identifying some of the solutions that Bakkt has up its sleeves. Upon discussing physical protections is when he hinted the alliance between Bakkt and BNY Mellon, a firm devoted to securing assets belonging to institutional investors (i.e. hedge funds, broker-dealers, etc.). In particular he:
“All cryptographic systems are secured in bank-grade vaults and datacenters that are protected with 24/7 physical security. […] Systems are routinely tested to ensure a seamless transition to our parallel disaster recovery facilities. […] Bakkt is working closely with BNY Mellon to offer geographically-distributed storage of private keys secured by the bank.”
Bakkt has been working towards obtaining a “qualified custodian license through the New York Department of Financial Services,” and if successful, Bakkt will be able to offer regulated crypto-backed custodian services.