Bakkt is going to appoint Coinbase’s fifth executive as CEO in November while working hard at getting the regulatory approval. Meanwhile CEO, Kelly Loeffler shares, we are about to see a revolution in crypto space reminiscing the energy market in the early 2000s.
Coinbase’s fifth executive to join Bakkt as CEO
US-based Coinbase’s former executive Adam White has cut his ties with the largest US crypto exchange in order to join the Bakkt, a new venture by Nasdaq’s parent company Intercontinental Exchange (ICE) as CEO.
The official announcement on Medium by Bakkt CEO, Kelly Loeffler, states:
“I’m thrilled to announce that we will welcome Adam White as Chief Operating Officer in November.”
The post further clarifies that Bakkt is hard at work with the regulators stating,
“We’re taking a transparent approach to engage across the industry as we begin testing and onboarding in November, and trading and warehousing in December, subject to CFTC approval.”
The idea involves the requirement of full pre-funding for all Bitcoin trades, clearing members won’t be required to handle cryptocurrency themselves, and a new, separate guaranty fund for Bitcoin, fully funded by Bakkt and ICE.
Loeffler concluding the post with,
“we believe the sooner a regulatory approach to digital assets is determined, the better positioned we are to support healthy markets and innovation within a dynamic global marketplace.”
Regarding Adam’s exit from Coinbase, the exchange’s spokesperson has been quoted as saying,
“We wish Adam all the best, and are proud of what we call the ‘Coinbase Mafia’—an increasingly impressive group of alumni who are driving the crypto space forward.”
Bakkt on its path to revolutionize crypto
Bakkt has been pitching itself as a venture that will bring Bitcoin mutual funds and ETFs to 401 (K)s and recently revealed that the first contracts will be physically delivered Bitcoin contracts.
The entry of Bakkt in the crypto world is the signal that traditional finance market is also onto Bitcoin and other digital assets. Moreover, it is the perfect offering to the Wall Street that current venues have yet to provide i.e. trading on a federally regulated exchange along with clearing and custody services.
In an interview with Fortune, White, the fifth employee of Coinbase shared, “I had a front-row seat for the last couple of years watching the money managers’ and other big investors’ evolving views of cryptocurrencies.”
He also shared the lack of infrastructure on the existing platforms that drove him to join Bakkt:
“In 2017, I saw a big shift. The interest in Bitcoin and other currencies started changing from retail to the institutional side. But the level of infrastructure of the existing trading sites often didn’t meet their expectations. That’s why they’re waiting on the sidelines. That’s why I joined Bakkt.”
According to White, institutions are more interested than ever and recent market trends show false impressions of waning interest in cryptos. “Far too often the public looks at price and market size to determine the progress in digital currencies,” says white on the fact that Bitcoins and other cryptos’ prices have fallen over 60 percent from the year beginning, rather the consideration should be on fundamentals, progress in technology, and trading volumes.
While Loeffler said,
“The digital market is fragmented like the energy market in the early 2000s. ICE was the pioneer attracting more and more institutions to trade energy, which is what created today’s liquid market. We’re about to see a revolution on the same scale in cryptocurrencies.”
If Bakkt delivers as it has been expected and gets the giants of the Wall Street to trade cryptos with the same scale, ease, and safety as of bonds or the stock market, it could lead to a big leap in crypto evolution.