“As a regulated custodian, Bakkt is an ideal fit for our network. Our mission is to ensure that our clients’ assets are safe, in a way that’s more secure than any other single solution. This is why we built our collaborative custody network with institutional-grade key holders like Bakkt.”
Bakkt has become a key agent for Unchained’s enterprise collaborative custody product, which allows bitcoin investors to utilize a vault system protected by multiple institutional key agents.
Acting as an institutional signatory for Unchained customers’ multi-signature vaults, Bakkt becomes particularly appealing to large institutions amidst regulatory uncertainties.
“Bakkt is an ideal fit for our network”
Established in 2018 and backed by International Exchange, Bakkt offers institutional-grade custody, trading, and onramp capabilities, aimed at supporting long-term, sustainable involvement in the cryptocurrency space.
Gavin Michael, CEO of Bakkt, said: “Secure and regulated custody is at the core of our business. As a part of Unchained’s network, we’re enabling a new way to access our platform. In a time of regulatory uncertainty, large institutions are seeking multiple custody options to keep their bitcoin safe. Unchained’s unique platform makes this access simple, and this strategic collaboration is an efficient way for Bakkt to continue scaling our custody business.”
Joe Kelly, CEO and co-founder of Unchained, commented: “As a regulated custodian, Bakkt is an ideal fit for our network. Our mission is to ensure that our clients’ assets are safe, in a way that’s more secure than any other single solution. This is why we built our collaborative custody network with institutional-grade key holders like Bakkt.”
Bakkt to raise $150 million
Founded in 2018 and owned by Intercontinental Exchange (ICE), Bakkt is one of the biggest digital asset industry names in the United States and abroad. The firm, however, has encountered significant financial challenges, including a cash shortage and difficulties in maintaining operations. The company has been working to address these issues by seeking to raise up to $150 million through the sale of securities.
This move is aimed at alleviating its ongoing cash flow problems and ensuring the continuation of its operations. Bakkt’s struggles are illustrated by its eight consecutive quarters of net losses since it became a publicly listed entity in October 2021, with significant losses reported in the first three quarters of 2023 alone. Despite its efforts to stabilize, including developing strategic partnerships with major corporations and focusing on institutional investors, Bakkt’s shares have seen a significant decline in 2024.
Furthermore, Bakkt made a strategic decision to end support for 25 out of the 36 crypto tokens previously listed on its recently acquired trading platform, Apex Crypto. This decision reflects a shift in its strategy towards focusing on a smaller number of more popular tokens, possibly influenced by recent regulations and changes in the crypto industry. The delisting of popular tokens such as Uniswap (UNI) and Aave (AAVE), among others, indicates Bakkt’s attempt to streamline its offerings in line with its strategic focus on the business-to-business (B2B) market for crypto services.
