After opening up the deposits and withdrawals of Bitcoin on September 6th, Bakkt Warehouse is now protecting these Bitcoins with its $125 million insurance policy. With this move, the New York based company is covering future risks for its customers.
The insurance policy only applies for Bitcoins deposited on the Bakkt Warehouse. Though Bakkt is acting as an insurer ready to offer compensation, specific details are still unkwown. It was, after all, just a tweet. How much of a lost Bitcoin can be claimed will be revealed only when Bakkt debuts on September 23rd.
In the past, cryptocurrency investors have lost millions of dollars because of the hacks, scams, and various frauds. With this move, Bakkt plans to reduce such casualties and offer a seamless experience to its customers.
About Bakkt Warehouse: Developed using the same security mechanism as the New York Stork Exchange, Bakkt’s Warehouse is the qualified custodian of Bakkt. Through the platform, users can receive physically-delivered Bitcoin futures (where customers will get the actual cryptocurrency instead of a cash payment after the contract expires).