NYSE’s parent company to offer one-day physical bitcoin futures contract
Bakkt, a regulated ecosystem for digital assets, will begin by trading and converting bitcoin to fiat currency.
Intercontinental Exchange (ICE), which owns the New York Stock Exchange (NYSE), has unveiled plans to form a new company, Bakkt, and launch a one-day physically delivered bitcoin futures contract, subject to approval.
ICE operates a number of global exchanges, clearing houses, data and listing services. The company will utilise Microsoft’s cloud solutions to develop its regulated ecosystem for digital assets, such as cryptocurrencies.
Bakkt intends to encompass federally regulated markets and warehousing, plus merchant and consumer applications. The platform is being created with the help of organisations such as Microsoft, Starbucks and BCG. Consumers and institutions will be able to buy, sell, store and spend digital assets on its global network.
Initial use cases for Bakkt include trading and converting bitcoin to fiat currencies. ICE’s US-based futures exchange and clearing house will also release a one-day physically delivered bitcoin contract, together with physical warehousing in November 2018. However, this offering remains subject to Commodity Futures Trading Commission (CFTC) review and approval.
Additionally, the clearing house plans to create a separate guarantee fund that will be financed by Bakkt.
“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,” Bakkt CEO Kelly Loeffler said.
“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,” Starbucks Vice President, Partnerships and Payments Maria Smith said.
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