Nexo Partners With Bakkt to Power Bitcoin, Ethereum Custody
“Is my crypto secure?” This is what you should be asking any crypto provider you entrust your assets with.
At Nexo, we swear by the highest security standards and partner with the leading authorities in custody, insurance, and compliance. We’re pleased to announce yet another milestone which cements our position as the most secure and compliant digital assets institution.
Nexo Teams Up With NYSE-listed Bakkt
Today, Nexo has partnered with Bakkt Holdings (NYSE: BKKT), a trusted digital asset platform listed on the New York Stock Exchange (NYSE). As part of the collaboration Bakkt is supporting Nexo through the Bakkt Warehouse – the company’s regulated custodian – which allows for safe and secure storage of Bitcoin and Ethereum.
What Does This Mean for Nexo Users’ Assets?
A portion of Nexo users’ funds will be held within the Bakkt Warehouse, which comprises both online (“warm”) and offline, air-gapped (“cold”) digital asset storage. Bakkt balances between warm and cold storage tiers to minimize risks associated with warm storage.
For additional layers of protection of Nexo users’ assets, Bakkt’s warm and cold wallets are built on secure wallet architecture, along with multi-zone physical security, including bank-grade vaults. Bakkt is regulated by the New York Department of Financial Services, registered as a Money Service Business with FinCEN, and has a BitLicense through the New York Department of Financial Services. Nexo users also benefit from $125M of insurance in place at the Bakkt Warehouse.
What Are Our Teams Saying?
According to Dan O’Prey, Chief Product Officer, Crypto at Bakkt:
“The cryptocurrency market continues to expand at a robust pace, leading reputable crypto companies to diversify custody of assets. 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.”
Commenting on the partnership, Nexo’s Business Development Executive George Manolov said:
“As a global digital assets institution, Nexo acknowledges the need for a trusted partner to bring an extra level of security and credibility to our clients’ cryptocurrencies. We recognized that Bakkt’s infrastructure and regulation-first approach to crypto was a natural fit and we’re confident that this partnership will benefit all our clients and expand Nexo’s ability to service the unprecedented institutional demand for cryptocurrencies as well as individuals’ growing transaction volumes.”
The relationship between Nexo and Bakkt builds on both companies’ commitment to increase the security and compliance of the crypto ecosystem. Bakkt was publicly listed on the NYSE in October, 2021, while Nexo has developed deep expertise in secure and reliable crypto custody through partnerships with Fidelity Digital Assets, Ledger, and Fireblocks, among others. The latest collaborations with Bakkt and Fidelity Digital Assets come on the heels of the crypto lending industry’s very-first real-time attestation wherein leading accounting firm Armanino monitors and displays Nexo’s assets and liabilities to the public daily.
To learn more about Nexo’s security infrastructure, click here.