Bakkt reveals imminent Bitcoin futures launch date after receiving regulatory approval

by Osiris Team

Posted on Aug. 17, 2019, 12:09 p.m.
Development Regulatory
Time to read: 3 min

Bakkt, which is a subsidiary of Intercontinental Exchange (ICE), the owner of the New York Stock Exchange, says its BTC futures and crypto custody warehouse will debut on September 23rd.

Bakkt’s Bitcoin futures will be cleared through ICE US, which is federally regulated by the U.S. Commodities Futures Trading Commission. The company has also gained the approval of Bakkt Trust Company LLC from the New York Department of Financial Services, which was the last hurdle the company was facing. The trust will allow Bakkt to operate as a qualified custodian, which is a crucial component of the company’s plan to physically settle contracts in BTC.

“We’re starting with the introduction of a regulated and secure qualified custodian for Bitcoin to support our futures contracts.

The Bakkt Warehouse, which is part of Bakkt Trust Company, is built using the cyber and physical security protections that support the world’s most actively traded markets, including the NYSE. In addition, the independent governance and compliance requirements of a qualified custodian mean that the Bakkt Warehouse is designed to meet the highest standards of oversight.”

Bakkt originally planned to launch in December of last year but ran into regulatory issues in its attempt to launch a futures product that pays in Bitcoin instead of cash. Bakkt says it’s working to build a trusted institutional ecosystem around the leading cryptocurrency.

“Uniquely, Bakkt Bitcoin futures contracts will not rely upon unregulated spot markets for settlement prices, thus serving as a transparent price discovery mechanism for the benchmark price for Bitcoin. The importance of this differentiator is only amplified by reports of significant manipulative spot market activity, and other concerns such as inconsistent anti-money-laundering policies and weak compliance controls…

Providing a trusted ecosystem is our first objective. To do that we are setting a higher standard, including an institutional compliance and anti-money laundering program, settlement prices that are distinct from unregulated spot prices, comprehensive market oversight, a guaranty fund contribution, and insurance. The trading and risk management tools that make all of this possible have been centuries in the making.”

Bakkt’s Bitcoin futures is part of its phase one rollout. The company has also partnered with Microsoft and Starbucks to launch a separate layer of its business model.

The company says it will utilize Microsoft’s cloud solutions to allow retail customers to purchase, hold and spend cryptocurrencies on a global network. The plan will also give Starbucks customers a way to convert crypto to US dollars to make purchases. Phase two was reportedly set to launch this summer. However, Bakkt has not officially released an update on the partnerships since last year.

Related links:
Like and comment it on:

More cryptocurrency news

Latest news

Wells Fargo pilots a dollar-pegged stablecoin for internal use

US financial giant Wells Fargo is developing a US dollar-linked stablecoin that will run on the firm’s first blockchain platform. The so-called Wells Fargo Digital Cash is planned to facilitate internal cross-border settlements

Adoption Development

Sept. 17, 2019, 4:30 p.m.

France will not tax crypto-to-crypto trades

French economy minister Bruno Le Maire has stated that crypto-to-crypto trades will be tax-exempt, according to a report by Bloomberg.


Sept. 16, 2019, 3:13 p.m.

France to block development of Facebook’s Libra, says minister

The country’s Minister of the Economy and Finance, Bruno Le Maire, said in new comments that Libra threatens the “monetary sovereignty” of governments

Adoption Development

Sept. 13, 2019, 9:34 a.m.

Binance US plans to begin onboarding customers next week

The largest crypto exchange by volume is making its U.S. debut next week.

Alerts Development

Sept. 12, 2019, 12:44 p.m.

Gemini launches custody product with 18 cryptos including Ethereum tokens

The Gemini exchange is launching an institutional-grade crypto custody solution, according to an announcement Tuesday.


Sept. 11, 2019, 1:44 p.m.

Follow us