Bakkt
Qualified CustodianBakkt is owned by Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange. Offers institutional-grade Bitcoin custody with traditional financial market expertise. Publicly traded (BKKT).
Quick Verdict
With a Custody Score of 7/10, Bakkt is ranked #8 of 11 among qualified custodian providers. Its strongest category is Regulatory and its weakest is Counterparty Diversification.
Analysis
Score Breakdown
The Custody Score is a weighted average across 8 criteria, each rated 1-10.
| Criterion | Score | Weight | Weighted |
|---|---|---|---|
| Security | 8 | 20% | 1.60 |
| Insurance | 6 | 15% | 0.90 |
| Regulatory | 8.5 | 15% | 1.27 |
| Fee Transparency | 7 | 10% | 0.70 |
| Track Record | 7 | 15% | 1.05 |
| Withdrawal Flexibility | 6.5 | 10% | 0.65 |
| Reporting & Audit | 7.5 | 10% | 0.75 |
| Counterparty Diversification | 2 | 5% | 0.10 |
| Total | 100% | 7 |
Key Features
- ✓ICE/NYSE pedigree
- ✓Warehouse-grade cold storage
- ✓Consumer wallet solutions
- ✓Crypto rewards and loyalty programs
- ✓Publicly traded (BKKT)
- ✓24/7 response support
Fee Breakdown
| Setup Fee | Contact for pricing |
| Annual Custody Fee | 0.10% AUM/month for BTC (1.2% annually). 0.20% AUM/month for ETH. |
| Transaction Fee | Varies |
| Withdrawal Fee | Network fees |
| Notes | $100/month minimum fee. Higher annual rate than most competitors. |
Security Details
Key Management
Cold storage with multi-zone physical security
Cold Storage
Majority cold
SOC Compliance
SOC 2 (details not fully public)
Penetration Testing
Yes
Incident History: No custody incidents. Company has faced financial challenges (stock price decline).
Insurance Coverage
Coverage
$125M reported (as of 2019, may have changed)
Carrier
Not publicly confirmed recently
Details
Insurance details less transparent than competitors. Originally claimed $125M coverage.
Regulatory Status
Licenses
- NYDFS Qualified Custodian (Bakkt Trust Company LLC)
Bakkt Trust Company LLC is a New York State-regulated qualified custodian. Parent ICE/NYSE provides institutional gravitas.
Pros & Cons
Pros
- Owned by ICE (NYSE parent) — unmatched traditional finance pedigree
- NYDFS qualified custodian
- Publicly traded — financial transparency
- Multi-zone physical storage
- Does not lend or rehypothecate client assets
Cons
- Single custodian
- 1.2% annual custody fee is among the highest in the industry
- $100/month minimum makes it expensive for smaller holdings
- Limited to BTC and ETH only
- Company financial health concerns (stock price decline)
How Bakkt Compares
Top qualified custodian providers ranked by Custody Score.
| Provider | Custody Score | Compare |
|---|---|---|
| Fidelity Digital Assets | 8.4 | Compare → |
| BitGo | 8.2 | Compare → |
| Coinbase Custody | 8.2 | Compare → |
| Anchorage Digital | 7.9 | Compare → |
| Gemini Custody | 7.7 | Compare → |