By On August 16th, Bakkt announced their Bakkt’s bitcoin futures and warehouses debut that will be launched on 23rd of September this year. The company will introduce custody and physically delivered bitcoin futures contracts in a partnership with ICE Futures U.S and ICE Clear U.S.
The news comes one year later after the company announced its ambitious plans to introduce digital asset’s institutional infrastructure, to a regulated marketplace with end-to-end encryption. CFTC has already awarded Bakkt’s certification and green light to start their user acceptance testing which has now begun. Once the company gets approval from the New York State Department of financial services, it will register a qualified custodian called Bakkt Trust Company as the custody bitcoin for physically delivered futures. Customers will be able to enjoy unprecedented asset regulation clarity, security, and access to a global exchange market under standard institutional-grade infrastructure.
Features of the Bitcoin Futures
Bakkt’s bitcoin futures contracts unique feature is their independence from unregulated spot markets to establish market prices, making them a transparent mechanism for price discovery and for benchmarking bitcoin price. Bakkt’s bitcoin futures will be exchanged through ICE Futures U.S and Cleared on ICE Clear U.S which are both federally regulated by CTFC. These regulations exchanges are different form trading platforms like crypto spot markets, in many ways in respect to risk management, compliance, and market surveillance.
Bakkt stated that their priority is to provide a trusted ecosystem. To achieve this, Bakkt will set a higher standard for institutional compliance, introduce an anti-money laundering program, offer distinctive settlement prices, and ensure a comprehensive market oversight. These developments are in line with 1999 statement by Milton Friedman, who said that an internet-connected economy future was imminent and “the only thing that is missing, soon to be developed, is a reliable e-cash. A method where buying on the internet, you can transfer funds from A to B, without A knowing B or B knowing A.”
About Bakkt Inc.
Bakkt Inc is designed to support digital assets through secure storage and transaction under a regulated ecosystem, which is built on a secure technology foundation to serve institutions, consumers, and traders. Bakkt CEO, Kelly Loefller stated that the company is excited to be supporting the future of digital assets as they continue their testing with market participants and regulators.
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