The Bitcoin derivatives exchange and crypto custodian, Bakkt, which is the subsidiary of Intercontinental Exchange (ICE) is going to launch a joint Bitcoin trading and custody service with the collaboration of Galaxy Digital a well-recognized investment management company. Both of the companies have announced their partnership today on Wednesday, June 10, 2020, in which they claim to offer institutional investors a collaborative bitcoin service.
A collaborative White-glove service
The official announcement reveals that Galaxy Digital and Bakkt are set “to launch a collaborative white-glove service for asset managers looking to acquire, build positions in and store bitcoin ("BTC")”.
As per the partnership agreement signed between the two companies, Galaxy Digital Trading which is an affiliate of Galaxy Digital is responsible for providing overall market access and other trading capabilities. While on the other hand, the crypto custodian Bakkt will provide its crypto custody services to safeguard clients’ assets and funds.
By collaborating with each other, both companies want to offer the best-in-class efficiency to its clients by handling the whole process i.e. the storage of assets and the execution of trades.
Two firms received a demand for physical Bitcoin access
The Head of Sales at Galaxy Digital Trading Tim Plakas has claimed in the announcement that they have received an increasing demand from institutional investors therefore they have formed this partnership so that they can serve them with what they need.
Adding more to it, Tim Plakas said that both of these firms will together offer a safe and efficient way to those who demand a physical Bitcoin access. Plakas stated:
"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. Together, Galaxy Digital and Bakkt offer a safe, efficient, and well-regulated route into physical bitcoin access, one that has been already proven successful in the macro hedge fund space."