Tag: Bitcoin Custody

Nexo Tapped Bakkt as its Cryptocurrency Custodian Partner

by CryptoPotato

The cryptocurrency lending platform – Nexo – joined forces with the Nasdaq-listed digital asset company – Bakkt Holdings. As a result, the latter will custody a portion of Nexo’s Bitcoin and Ethereum holdings in the Bakkt Warehouse.

Bakkt’s Newest Partnership

The Bakkt Warehouse comprises both online (“warm”) and offline (“cold”) digital asset storage. The company balances between the two tiers to minimize risks associated with cryptocurrency custody services.

In a recent announcement, Nexo raised hopes that this model could bring an enhanced investment shield for its users. The “warm” and “cold” wallets are built on secure wallet architecture, along with multi-zone physical security, the entity informed. However, Nexo did not disclose what proportion of the customers’ Bitcoin and Ethereum funds will store in the Bakkt Warehouse.

George Manolov – Business Development Executive at Nexo – stated that a global digital asset institution, such as his firm – needs a trusted partner to guarantee an extra level of customer protection.

“We recognized that Bakkt’s infrastructure and regulation-first approach to crypto was a natural fit,” he added.

In turn, Dan O’Prey – Chief Product Officer at Bakkt – opined that such custody initiatives result from the rapid expansion of the cryptocurrency industry.

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“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,” the exec concluded.

Bakkt to Provide Crypto Services to Manasquan Bank Clients

Nearly a month ago, the company inked a deal with the New Jersey-based Manasquan Bank to enable crypto services for the latter’s customers. Specifically, they would be able to buy, sell, and hold digital assets. The project is anticipated to see the light of day in Q2 2022.

James Vaccaro – President and CEO of the American bank – said his entity focuses on introducing new features to clients, via which they can join the digital financial world. He stated that the collaboration with Bakkt comes at a time when users have been seeking opportunities to hop on the cryptocurrency bandwagon.

Prior to that, the company expanded its digital asset payment options by teaming up with Google. The collaboration allowed individuals to add their Bakkt Visa Debit Cards and make crypto transactions wherever Google Pay is accepted.

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Another Major Korean Bank to Provide Crypto Custody Services

by CryptoPotato

One of the largest financial institutions in South Korea – Woori Financial Group – will offer crypto custody services to its clients. Its banking unit – Woori Bank – will launch the initiative in a partnership with the fintech solutions provider – Coinplug Inc.

Woori Bank Dives into Crypto

According to a report from The Korean Economic Daily, Woori Bank will be the next South Korean bank to enter the digital asset custody services (DACS) market. The institution teamed up with the Bitcoin-focused fintech solutions provider Coinplug Inc. to set up a custody joint venture (JV).

The project, named D-Custody, will be incorporated by next week at the earliest. Coinplug will be the main shareholder, while Woori Bank will have less input.

“In overseas markets, the digital asset custody has become a successful, established practice among the new services offered by the banks.” – commented an official from the bank.

At its core, digital asset custody allows providers to store cryptocurrencies on behalf of individuals and companies. Recently, there has been a surge in demand for this service in South Korea as a significant number of local firms started trading and holding various types of virtual currencies.

For example, the largest bank in South Korea – KB Kookmin Bank – entered the DACS market at the end of 2020 by establishing Korea Digital Asset Co. (KODA). Additionally, Shinhan Bank launched the same initiative earlier this year by becoming a strategic investor of Korea Digital Asset Custody Co. (KDAC).

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The Expansion of Crypto Custody Services

As CryptoPotato recently reported, major banks in the largest economy – the US – also started offering crypto custodian services. One of the latest ones to join the trend was Cowen Inc.

The multinational investment bank partnered up with Standard Custody & Trust Co. to provide “institutional-grade” custody services. The financial giant with $12B in AUM revealed that the innovation would be available for hedge funds and managers. Jeffrey Solomon – CEO of Cowen – explained the bank’s decision:

“The demand is clearly here. We’re going to be able to help a lot of our institutional clients get over the hump and start trading digital assets in the not-too-distant future.”

At the beginning of 2021, the oldest American bank – BNY Mellon – announced it would provide crypto-related services to its customers. The New York-based institution said it would hold, issue, and transfer Bitcoin (BTC) and other digital assets on behalf of its institutional clients.

Featured Image Courtesy of FT

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NYDIG and Q2 partner to enable Bitcoin trading for 18M US bank customers

by Cointelegraph

New York Digital Investment Group (NYDIG) has partnered with Q2, a firm specializing in providing digital services to financial institutions, to provide access to Bitcoin (BTC) for bank account holders in the United States.

According to a release issued on Wednesday, the partnership will potentially open up Bitcoin buying, selling and custody channels to about 18.3 million bank customers in America.

Indeed, Q2 provider internet banking services to about 30% of the Top 100 U.S. banks and serves over a tenth of the country’s digital banking customers.

As previously reported by Cointelegraph, NYDIG began working towards providing Bitcoin trading services to Americans via their bank accounts. At the time, the firm partnered with fintech outfit Fidelity National Information Services to provide U.S. lenders with the ability to offer crypto trading services to their customers.

Apart from Q2, NYDIG has also partnered with cloud-based digital banking service provider Alkami and global payment services outfit Fiserv to enable Bitcoin access for more customers of financial institutions.

Detailing the specifics of its partnership with NYDIG in a separate announcement, Fiserv revealed that its collaboration was tailored towards banks and credit unions amid the growing interest for BTC.

First Foundation Bank, a California-based financial institution, is reportedly working with NYDIG and Fiserv to onboard Bitcoin trading and custody for its customers. Back in April, the bank’s parent company, First Foundation Inc., invested in NYDIG to provide clients with access to Bitcoin-based investment products.

Related: US banks to allow Bitcoin trading in 2021, says NYDIG execs

On the Alkami front, NYDIG is now part of the firm’s Gold Partner Program — a significant step in enabling banks and credit unions to offer BTC buying and custody products to their customers.

Commenting on the importance of these collaborations, NYDIG co-founder and CEO Robert Gutmann declared that these partnerships were necessary to make Bitcoin readily accessible via legacy financial institutions.

According to Gutmann, such integration efforts will help to ensure the continued expansion of the Bitcoin network.