ICE’s Bakkt acquires Digital Asset Custody Company [DACC]
April 29, 2019
Intercontinental Exchange’s Bakkt has been one of the most awaited launches in the cryptocurrency space, mainly because it would be offering fully regulated physically delivered Bitcoin Futures. Earlier today, Adam White, COO of Bakkt, announced that the acquisition of Digital Asset Custody Company [DACC], a purpose-built custodian that safeguards cryptocurrencies in order to provide better security to its customers, in an official blog post. Notably, Digital Asset Custody Company provides custody solutions to cover EOS, the fifth largest cryptocurrency in the world, by market cap.
The post stated that Bakkt has been working for around two years to provide custody solutions to its customers and that it would be leveraging the same operational controls, cybersecurity, and institutional-grade hardware used by ICE, in order to “manage all thirteen of its regulated exchanges” across the globe.
Additionally, Bakkt’s will make use of both hot and cold wallets in order to secure its customers’ funds, where a majority of the funds will be stored in cold wallets that are insured with $100 million policy “underwritten by leading global insurance chains.” This wallet architecture also deploys on-chain and off-chain security measures “to safeguard cryptographic keys, including the enforcement of multi-signature controls.”
On one hand, the devices used to store cryptocurrency would be secured with “bank-grade vaults and datacenters” that would be secured 24*7. While on the other hand, the platform would be working with BNY Mellon to geographically distribute its private keys.
Adman White stated,
“It is with that same commitment to setting a new standard for securely storing digital assets that we’re excited to announce that we have acquired Digital Asset Custody Company (DACC). DACC shares our security-first mindset and brings extensive experience offering secure, scalable custody solutions to institutional clients.”
He further added,
“As we look to scale and support custody of additional digital assets, DACC’s native support of 13 blockchains and 100+ assets will serve as an important accelerator, and we’re pleased to welcome Matthew Johnson, Adam Healy, and the entire DACC team to Bakkt.”