ICE’s Crypto Trading Platform Bakkt Acquires Crypto Custodian Service DACC

News | April 30, 2019 By:

Bakkt, a digital assets platform developed by the Intercontinental Exchange (ICE), has acquired Digital Asset Custody Company (DACC), a crypto custodian service, for an undisclosed amount.

Bakkt is cryptocurrency platform that aims to bring digital assets to the mainstream and help unlock the potential of the technology. Bakkt’s first solution is a physical-delivery bitcoin future, which will be traded on ICE Futures US (IFUS) and cleared on ICE Clear US (ICUS), a federally regulated exchange and clearinghouse regulated by the Commodity Futures Trading Commission (CFTC).

Bakkt COO Adam White said that his company acquired DACC to further develop secure storage solutions for digital assets.

“DACC shares our security-first mindset and brings extensive experience offering secure, scalable custody solutions to institutional clients,” White said. “The team’s experience integrating multiple blockchains and operating cutting-edge consensus mechanisms is a valuable addition to our team and future product line. 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.”

Earlier this month, it was reported that Bakkt was considering acquiring a BitLicense from the New York Department of Financial Services (NYDFS) to launch bitcoin futures.

In the company’s announcement, White confirmed that Bakkt has filed with the NYDFS for approval to become a trust company, which will enable the firm to serve as a Qualified Custodian for digital assets.

“This structure will provide the first end-to-end regulated environment for price discovery of crypto — bitcoin will be stored at a regulated custodian, and traded and cleared on a federally regulated exchange and clearinghouse,” White said. “This means investors will have access to the same high performance, low latency exchange and clearing infrastructure that powers many of the world’s most liquid futures markets. We believe that end-to-end regulation, paired with reliable infrastructure, will unlock greater institutional participation and, as a result, establish more liquid, fair and efficient markets for this emerging asset class.”