Cryptocurrency lending platform – Nexo – has partnered with Nasdaq-listed digital asset company – Bakkt Holdings. As a result, the latter will keep part 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 gave hope that this model could provide an improved investment shield for its users. The “hot” and “cold” wallets are built on a secure wallet architecture, as well as multi-zone physical security, the entity informed. However, Nexo did not disclose the proportion of clients’ Bitcoin and Ethereum funds that will be stored in Bakkt’s 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 regulatory-focused 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.
“We are delighted that Nexo has chosen Bakkt Warehouse as their trusted solution. As we build on our enterprise partnerships and expand our operations and revenue network, secure custody continues to be a pillar of the strategy of Bakkt, leveraging state-of-the-art physical and cyber security, technology and institutional-grade governance, and backed by insurance,” the executive 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 – chairman and chief executive of the US bank – said his entity is focused on introducing new features for customers, through which they can join the digital financial world. He said the collaboration with Bakkt comes at a time when users are looking for opportunities to jump 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.
