Blockchain News

Unchained Forms Strategic Alliance with Bakkt to Enhance Bitcoin Custody Network

Unchained, a player in the bitcoin financial services sector, has announced a strategic partnership with Bakkt on November 15, 2023, marking a significant expansion of its Collaborative Custody Network. This alliance not only strengthens Unchained’s position in the cryptocurrency custody landscape but also enhances its capability to secure over $3 billion in bitcoin assets for its clients. The announcement reflects Unchained’s substantial growth, with a nearly 40% increase in secured bitcoin assets since October 2022.

Established in 2016, Unchained has been instrumental in helping individuals and businesses gain true ownership of their wealth through bitcoin key holding. The company’s collaborative custody model, which combines the advantages of financial services with the benefits of self-custody, stands as a testament to consumer protection in the uncertain economic climate. With its headquarters in Austin, Texas, Unchained’s network now includes Bakkt, alongside Coincover and Kingdom Trust, offering an unmatched breadth in the industry for secure bitcoin storage.

The inclusion of Bakkt, founded in 2018 by Intercontinental Exchange, Inc. (ICE) and renowned for its institutional-grade custody, trading, and onboarding capabilities, complements Unchained’s commitment to providing secure and compliant crypto infrastructure. Bakkt Custody, operated by Bakkt Trust Company LLC and an NYDFS Qualified Custodian, adds significant credibility to Unchained’s custody solutions, reinforcing client confidence in asset safety.

Unchained’s innovative approach to bitcoin treasury security involves a model requiring multiple private keys for access, thereby reducing risks associated with exchange hacks and self-custody challenges. Clients have the flexibility to hold a private key or distribute it among trusted custodians, including Bakkt. This method resonates with Unchained’s belief that a decentralized custody solution is more robust than relying on a single custodian.

Gavin Michael, CEO and President of Bakkt, highlights the critical need for qualified custody in the volatile cryptocurrency market. Bakkt’s entry into Unchained’s enterprise custody network is a strategic move to cater to clients seeking regulated and secure bitcoin custodians. Emphasizing security and compliance as Bakkt’s core values, Michael anticipates a fruitful collaboration with Unchained.

Joe Kelly, CEO and co-founder of Unchained, expresses his enthusiasm for the partnership with Bakkt, emphasizing the alignment of both companies in prioritizing client asset security. Kelly underscores the importance of providing bitcoin storage options that safeguard against single points of failure and enable clients to independently verify the safety of their assets.

This collaboration follows the recent addition of Coincover to Unchained’s network in October. As Unchained continues to expand its custody partnerships, it maintains a focus on empowering clients with unilateral control over private keys, a cornerstone of secure and autonomous asset management.

Unchained and Bakkt are scheduled to host a joint webinar on November 16, 2023, to discuss the intricacies and advantages of collaborative custody as a risk management solution.

Image source: Shutterstock

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