On January 19, Bakkt Holdings Inc announced a partnership with Nexo, a cryptocurrency-backed loan platform, to custody crypto assets in the Bakkt warehouse. The partnership will see Nexo using Bakkt’s Warehouse to safeguard its customers’ Bitcoin and Ether holdings. Bakkt warehouse is a regulated custodian, which allows for secure and safe storage of Bitcoin and Ethereum.
Dan O’Prey, the Chief Product Officer, Crypto at Bakkt, stated: “The cryptocurrency market continues to expand at a robust pace, leading reputable crypto companies to diversify custody of assets. We are pleased that Nexo has chosen the Bakkt Warehouse as a trusted solution. As we build upon our partnerships with businesses and expand our network of operations and revenue, secure custody continues to be a pillar of Bakkt's strategy, leveraging state-of-the-art physical and cyber security, institutional-grade technology and governance, and backed by insurance.”
Meanwhile, George Manolov, Business Development Executive at Nexo, also commented: “As a global digital asset institution, Nexo acknowledges the need for a trusted partner to bring an extra level of security and credibility to our clients’ cryptocurrencies. We recognized that Bakkt’s infrastructure and regulation-first approach to crypto was a natural fit, and we’re confident that this partnership will benefit all our clients and expand Nexo’s ability to service the unprecedented institutional demand for cryptocurrencies as well as individuals’ growing transaction volumes.”
Nexo Remains Committed to Grow Its Crypto Business
The development by Nexo to tap services being offered by Bakk comes at a time the crypto company is committed to expanding its institutional service offerings through a wide range of partners. In June last year, Nexo added Cardano to its offerings within its trading platform . The product expansion now enables its customers to purchase ADA and get cashback while earning daily interest and borrowing against the cryptocurrency through its credit line product. In September last year, Nexo was audited by Armanino to provide real-time updates concerning its asset-customer liability threshold. In November last year, Nexo made a strategic investment in Texture Capital Holdings Corp, an SEC-registered broker-dealer. The crypto firm considered the investment into the regulated broker-dealer as important as it would broaden its compliance capabilities and products to US customers.
