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.
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.
“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.
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.