Bakkt Platform launch has finally been confirmed for 2019 as the firm seems to have finally been able to convince the regulatory watch-dog, CFTC (Commodity Futures Trading Commission) and NYDFS (New York Department of Financial Services) for its approval. The online platform will offer a daily settlement bitcoin futures contract, and a monthly settlement bitcoin futures contract similar to one offered by CME.
Bakkt will be launched in collaboration with two other ICE (Inter-Continental Exchange) subsidiaries: ICE Futures US and ICE clear US. ICE is also the parent company of the NYSE (New York Stock Exchange). ICE Futures US will handle the Futures contact while, ICE clear US will manage the margin trading on the platform.
The announcement made by Kelly Loeffler, the CEO of Bakkt emphasized on the conviction of the team and ICE in providing this service. She said in a blog post,
Bakkt will contribute $35 million into the clearinghouse risk waterfall. This puts our own “skin in the game” and aligns our interests for market integrity and safety with market participants.
The platform will also offer custody arrangements like Fidelity and Gemini. The custody wing is approved by the CFTC regulators. Safekeeping of the cryptocurrencies will be supported by insurance, cybersecurity, and comprehensive compliance, including an anti-money-laundering program and blockchain analytics
Moreover, since Bakkt is not yet registered as a Trust Company, the Bitcoin Futures contract by placing Bitcoins in margin or custody will be awaiting a green signal for regulatory bodies. The test phase of the platform will be launched sometime in July this year. The public launch of the platform is also expected to be rolled out “in the coming months.”
Do you think the Bakkt new fuel new energy into the cryptocurrency markets or we’ll have to wait for the launch? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com