Bakkt Announces New Insurance Coverage, Claims More Than 70 Custody Clients

Bitcoin warehouse Bakkt has onboarded more than 70 clients for its custody services and given them the option to tap more than $600 million in insurance coverage overall, the company announced Monday.

In a blog post, company president Adam White said Bakkt had partnered with insurance broker Marsh to provide more than $500 million worth of cover. Bakkt customers would have to purchase this insurance themselves, and it would be in addition to, rather than instead of, the custodian's existing $125 million insurance coverage.

Marsh has been involved in the crypto space since at least 2018, and already facilitates or provides insurance for Crypto.com and Ledger.

Bakkt now has more than 70 customers for its custody services, the company said.

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As part of its processes, the company has also completed an SOC 1 Type I examination (an evaluation of financial reporting controls at a given moment in time), which was conducted by KPMG. PricewaterhouseCoopers also conducted an SOC 2 Type II examination (an evaluation of customer data protection controls over a six-month period) of Bakkt's enterprise functions, including the infrastructure hosted by its parent firm, Intercontinental Exchange.

"These audited procedures and controls are essential to our institutional customers," White said, citing Tagomi as one of its clients.

Bakkt is also continuing its work on a retail-focused mobile app, eyeing a potential user base of more than 30 million individuals after partnering with two unnamed financial institutions, the blog post added.

"This suite of enterprise loyalty and merchant products has powered the redemption of more than 1.5 trillion points, helping companies put loyalty points to work for consumers," he said.

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The retail app development is tied to Bakkt's earlier acquisition of Bridge2 Solutions, a loyalty rewards platform.

"Our enterprise loyalty products provide critical infrastructure to companies around the world and we’re proud to power thousands of programs that unlock digital assets for consumers," White wrote.