NYSE’s parent company to Bitcoin futures
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.
Earlier this month, a research report forecast that spending on blockchain solutions would increase to $11.7 billion by 2022. Now, a new analysis has revealed that in the first half of 2018, blockchain investment in the United States has hastily eclipsed the total investment expended throughout the entirety of last year.
But bitcoin is having a much tougher time. Many distinguished economists keep repeating the same broken argument but it might be an unfortunate side-effect of academic rigour. There’s a ton of research pouring into the cryptocurrency space and much of it is focused on bitcoin and proof-of-work economic theories.
Latest cryptocurrency news
- 14-day crypto predictions: As FTX collapse effects linger, sentiment shifts to bearish on Bitcoin
- Crypto market crisis: FTX on the verge of bankruptcy
- 14-day crypto predictions: As cryptocurrencies drop, sentiment shifts to neutral on Bitcoin
- Binance to purchase FTX in bailout offer
- 14-day crypto predictions: As cryptocurrencies hold their ground, sentiment shifts to bullish on Bitcoin
Picture: Shutterstock
