Update: BAKKT™ BITCOIN (USD) DAILY FUTURES CONTRACT SHOULD
BEGIN TRADING ON DECEMBER 12, 2018
What is Bakkt?
„A Global Regulated Ecosystem for Digital Assets“
Bakkt is a company with the goal of enabling consumers and institutions to buy, sell, store and spend digital assets on a global network. The aim is to provide a federally regulated market for Bitcoin and a warehousing solution, along with consumer and merchant applications. The initial focus is on the trading and conversion of Bitcoin versus fiat currencies.
The first component of Bakkt is a 1-day physically delivered Bitcoin futures contract. This means that any future contract gets settled in BTC, opposed to the CME- and CBOE-contracts, which are settled in cash. This will be combined with a physical warehousing solution which is reviewed and approved by the CFTC (Commodity Futures Trading Commission). These two are the first features Bakkt will offer, and the launch is scheduled for November/December this year.
Testing and onboarding are scheduled for November and trading and warehousing for December.
But Bakkt goes even further, when it is finished it will be a fully regulated exchange where digital assets can be bought, sold, stored and spent. Bakkt is aiming to develop open technology to connect existing market and merchant infrastructure to the blockchain.
Plans for 2019 involve leveraging Microsoft cloud solutions for connected markets, issuing Crypto Debit Cards and allow 401k pension accounts and funds to invest in Bitcoin. Starbucks is on board as a partner and they aim to build a technology which allows users to convert their crypto to fiat-currencies seamlessly and while in the payment process to pay for goods and services. The ultimate goal is to transform Bitcoin into a trusted global currency with broad usage. Bakkt brings transparency and trust to previously unregulated markets.
The name „Bakkt“ is a play on “backed,” as in “asset-backed securities.“
Who are the people behind Bakkt?
Bakkt was formed by the Intercontinental Exchange (ICE) which is an operator of global exchanges, clearing houses, data and listings services. The ICE is a financial giant, it owns the New York Stock Exchange (NYSE), among other exchanges. For the creation of Bakkt, the ICE made partnerships with the Boston Consulting Group (BCG), Starbucks (for their experience with cashless payment systems) and Microsoft (for their blockchain experience with AZURE and their cloud solutions).
Goldman Sachs is believed to be in the process of building ways to use Bakkts custody solutions for the storage of digital assets for their customers.
Kelly Loeffler, an experienced ICE executive, will serve as the CEO of Bakkt. Recently it was announced that Adam White will be the Chief Operating Officer (COO). Adam White was the fifth employee of Coinbase and he was responsible for building GDAX, the wing of Coinbase who was aimed towards professional traders. He is a real veteran and was one of the key architects to build one of the first professional marketplaces for digital assets.
Bakkt BTC Potential
The potential is absolutely gigantic. In my opinion, two things are missing for institutional money and the mainstream to invest in Bitcoin:
- Trading on official and fully regulated exchanges
- Safe storage for digital assets
Bakkt solves both of these problems at once and paves the way for Bitcoin to arrive in the Mainstream and this will be the final step to transform BTC from „funny internet money“ to an asset class of its own. I expect the demand for BTC to rise sharply by the time Bakkt launches because the futures contracts are settled in BTC. Bakkt will actually trade Bitcoin, not just speculate on its price movements. This will lead to transparent, efficient price discovery and this paves the way for the first Bitcoin-ETF to get approved. And this is just the beginning, Bakkt opens the floodgates for institutional investors, funds, pension programmes and retail investors. And with the custody solution, it allows the safe and regulated storage of digital assets on an institutional scale, for the first time ever.
“In bringing regulated, connected infrastructure together with institutional and consumer applications for digital assets, we aim to build confidence in the asset class on a global scale, consistent with our track record of bringing transparency and trust to previously unregulated markets,”
- Jeffrey C. Sprecher, Founder, Chairman, and CEO of Intercontinental Exchange.
“Bakkt is designed to serve as a scalable on-ramp for institutional, merchant, and consumer participation in digital assets by promoting greater efficiency, security, and utility,”
- Kelly Loeffler, ICE’s head of digital assets, CEO of Bakkt
“As the flagship retailer, Starbucks will play a pivotal role in developing practical, trusted and regulated applications for consumers to convert their digital assets into US dollars for use at Starbucks,”
- Maria Smith, Vice President, Partnerships and Payments for Starbucks
About the author
This article is written by Blockchain Whispers top fundamental analyst under the pseudonym Mr. Y
Mr. Y is famous for announcing first:
Coinbase listing ZRX back in May
ZIL being listed on Binance
ONT 8.5x from the time he signaled Blockchain Whispers that ONT is undervalued to the sell signal.
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