Bakkt’s Bold Step: Expanding Digital Asset Custody to New Coins

Bakkt’s Revamped Custody Services

In a significant move that makes us raise our eyebrows (and hopefully not our wallets), Bakkt is stepping back into the spotlight of digital asset custody. On November 15, the crypto firm announced it would be adding support for six new cryptocurrencies to its custody offerings. This comes on the heels of Bakkt’s ongoing transformation and a bid to shake off its recent losses.

The New Kids on the Blockchain

Alongside heavyweights like Bitcoin (BTC) and Ether (ETH), Bakkt will now keep your digital treasures for you with added support for:

• Bitcoin Cash (BCH)
• Dogecoin (DOGE)
• Ethereum Classic (ETC)
• Litecoin (LTC)
• Shiba Inu (SHIB)
• USD Coin (USDC)

That’s right, Dogecoin enthusiasts! Bakkt has your backs. They expect to add even more coins to the list in early 2024 as they ramp up their operations.

How Does Crypto Custody Work?

Custody services in the world of crypto may sound as intimidating as trying to nail jelly to a wall, but they revolve around safeguarding cryptographic keys — the magical keys to your digital kingdom. Bakkt employs a range of impressive security measures. Picture this: your coins are stored in cold wallets, safe from the heat of malevolent hackers, while the enrollment of multisignature technology allows multiple approvals for accessing your assets. It’s like having a vault guarded by a dragon that occasionally requires a password shared only between BFFs!

Fluctuating Finances: A Peek into Bakkt’s Earnings

Now, let’s pour some cold water on the enthusiasm and check the books. Bakkt’s quarterly earnings report released on November 14 revealed an adjusted EBITDA loss (non-GAAP) of $21.6 million, a 30% nosedive year-over-year attributed to a reduction in compensation and benefits. Beware, growth doesn’t come free!

The Path Forward: Partnerships and Strategic Focus

In light of recent challenges, Bakkt is shifting gears to strengthen its crypto custody arm through new partnerships. They’re gearing up to offer clearing and custodial services for the much-talked-about EDX Markets, acting as a backup for this Wall Street-supported venture. They’re not just sitting on their hands; new clients like Unchained and LeboBTC are lining up, giving them a reason to keep pushing forward.

Conclusion: The Need is Real

As the industry evolves, the need for qualified crypto custody is becoming increasingly apparent. Gavin Michael, CEO of Bakkt, summarized the sentiments around this transition, emphasizing the lessons learned over the past year. With traditional financial institutions also eyeing this space, it seems Bakkt isn’t alone in recognizing the importance of digital asset custody. So, buckle up, folks; the ride in the crypto custody world is just getting started!