By Bitcoin deposited to Bakkt Warehouse is protected by a $125 million insurance policy, according to a tweet from the provider of the future on September 9th, 2019.
This is a follow-up to a tweet just a few days ago, where the official Bakkt account posted that the company had opened its Warehouse for customer Bitcoin deposits and withdrawals.
Some time back, Bakkt announced that it had received the green light from the CFTC and approval by the New York State Department of Financial Services to create Bakkt Trust Company.
Today’s tweet signifies an end to a very drawn-out process of trying to secure approval from these regulatory authorities.
The company now seems to be finally approaching its aspiring goal of creating a marketplace for physically-settled Bitcoin futures.
“It is regulated by the New York State Department of Financial Services (NYDFS) as a Limited Purpose Trust Company, providing customers with a Qualified Custodian of Bitcoin.” the company wrote.
Bakkt, which is owned by the Intercontinental Exchange (ICE), originally announced its “ambitious vision” to create a marketplace for physically-settled Bitcoin futures, last year.
This is the first time a facility like this has received proper authorization, and with this, many believe that Bakkt will be a game-changer for the Bitcoin community.
Bakkt futures will officially go live on September 23rd on Intercontinental Exchange (ICE) futures.
What does Bakkt Warehouse mean for bitcoin holders?
Bakkt futures will allow institutional traders and investors to access Bitcoin in a regulated environment, offering storage, prospects, and daily settled Bitcoin contracts.
The company promises in its announcement to follow strict compliance guidelines and proper standards so that Bakkt Warehouse meets the higher standards of oversight.
Bakkt’s approval could lure a lot of potential institutional investors, who are either very sceptical or downright prohibited from playing in an unregulated field.
The approval is expected to change that, thus doing wonders for Bitcoin and breathing more life into the crypto sector. If more players come in soon and with more investment, prices could improve.
About Bakkt
Bakkt is a company of NYSE-operator InterContinental Exchange (ICE) designed to bring digital assets to the mainstream by enabling consumers and institutions to buy, sell, store, and spend digital assets seamlessly.
Bakkt plans to nurture open technology to introduce the existing market and business infrastructure to the blockchain.
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