Safeguarding Obligation For Crypto

12 Months Ended

Dec. 31, 2023

Platform Operator, Crypto-Asset [Abstract]

We provide custody services for Bakkt Crypto's customers and for Bakkt Trust's standalone custody customers. Bakkt Trust also provides custody services for Bakkt Marketplace crypto customers as described in Note 1. We do not own crypto held in a custodial capacity on behalf of our customers. We maintain the internal recordkeeping of those assets and are obligated to safeguard the assets and protect them from loss or theft. We hold the controlling majority of cryptographic key information on behalf of our Bakkt Trust custodial customers. A significant portion of the crypto we hold in a custodial

capacity are custodied by institutional grade subcustodians. Subcustodians used by Bakkt Crypto hold our customer cryptographic key information and are not permitted to move assets without our specific authorization.

As of December 31, 2023, we have a safeguarding obligation for crypto of $701.6 million. The safeguarding liability, and corresponding safeguarding asset for crypto on the balance sheet, are measured at the fair value of the crypto held for our customers. We are not aware of any actual or possible safeguarding loss events as of December 31, 2023. Therefore, the safeguarding obligation for crypto and the related safeguarding asset for crypto are recorded at the same amount.

We are responsible for holding the following crypto on behalf of our customers as of December 31, 2023 and December 31, 2022 (in thousands):


	December 31, 2023		December 31, 2022
Bitcoin	$	262,231	$	15,717
Ether	196,016		75
Shiba Inu	143,237		—
Dogecoin	78,524		—
Other	21,548		—
Safeguarding obligation for crypto	$	701,556	$	15,792

Safeguarding asset for crypto	$	701,556	$	15,792