In a November 15 announcement, cryptocurrency company Bakkt appears to be re-embracing its role as a digital asset custodian, adding support for six new coins, including Bitcoin, Ethereum, Bitcoin Cash, Ethereum Classic, Litecoin, Dogecoin, USD Coin, and Shiba Inu.
Digital asset custodianship focuses on safeguarding cryptographic keys, a crucial aspect of accessing and transferring assets securely. Different security measures are employed by supervisory entities like Bakkt, including cold storage facilities and multi-signature technology requiring multiple approvals for access.
This announcement follows Bakkt’s quarterly earnings report on November 14, in which the company revealed an adjusted EBITDA loss of $21.6 million, a 30% decrease compared to the same period the previous year.
According to the report, Bakkt saw its cryptocurrency revenue reach $191.8 million in the third quarter of 2023, largely due to its acquisition of Apex Crypto in April. In the quarter, the company generated a total revenue of $204.8 million. As for assets under custody, Bakkt reported $505.7 million, a 28% decrease compared to the previous year.
To bolster its cryptocurrency custody arm, Bakkt is also developing partnerships. According to the company’s quarterly report, it plans to offer payment clearing and custody services to the cryptocurrency exchange EDX Markets, which is backed by Wall Street, initially serving as a qualified backup supervisor. Among Bakkt’s new custody service customers are Bitcoin Unchained and LeboBTC, a cryptocurrency consulting firm for institutional investors.