Crypto investment firm Galaxy Digital and Bitcoin derivatives company Bakkt are teaming up to launch a Bitcoin trading and custody service for institutional investors.
According to a press release, the platform will target asset managers looking to acquire, build positions in and store BTC.
“Galaxy Digital Trading (“GDT”), Galaxy Digital’s affiliate, is providing market access and trading capabilities, while the Bakkt Warehouse, a qualified custodian of bitcoin regulated by the New York State Department of Financial Services, is safeguarding digital assets for clients.
This direct connectivity between Galaxy Digital and Bakkt enables the two companies to offer clients best-in-class efficiency through the entire process of onboarding, trade execution and storage of their digital assets.”
Galaxy Digital Trading’s head of sales, Tim Plakas, says the partnership will help both companies meet an increase in demand from high net worth investors.
“We designed this partnership to service the uptick in demand our two firms have received from traditional asset managers seeking access to physical bitcoin.
These funds expect the same caliber of market knowledge and trade execution expertise in BTC as they would expect from any established traditional finance desk, and Galaxy provides that, while Bakkt delivers the high level of regulatory-compliant security required for storing digital assets.”
The new service, which gives clients direct access to both firms through a single signup process, is now live.
Galaxy Digital Trading’s over-the-counter trading desk processed more than $1 billion dollars in volume in the first quarter of 2020. Bakkt, which is owned by Intercontinental Exchange, says it currently has 70 clients using its warehouse to store BTC.
