Safeguarding Obligation For Crypto

3 Months Ended

Mar. 31, 2024

Platform Operator, Crypto-Asset [Abstract]

We provide custody services for Bakkt Crypto's customers and for Bakkt Trust's standalone custody customers. Bakkt Trust may also provide sub-custodian services Bakkt Crypto customers. 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 March 31, 2024, we have a safeguarding obligation for crypto of $1,233.2 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 March 31, 2024. 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 March 31, 2024 and December 31, 2023 (in thousands):


	March 31, 2024		December 31, 2023
Bitcoin	$	405,632	$	262,231
Ether	249,187		196,016
Shiba Inu	363,748		143,237
Dogecoin	174,665		78,524
Other	40,006		21,548
Safeguarding obligation for crypto	$	1,233,238	$	701,556

Safeguarding asset for crypto	$	1,233,238	$	701,556