Bakkt Bitcoin daily futures contracts will formally commence exchanging on December 12, 2018, according to a release from Intercontinental Exchange (ICE), owner of the New York Stock Exchange and the company behind Bakkt.
Bakkt was announced in August 2018 as “a scalable on-ramp for institutional, merchant and consumer participation in digital assets.” The platform is promoted as an “open platform” for “digital assets beyond global exchanges and business,” and was, in a bit, hurled as an answer for day-to-day crypto debts for traders.
The document said:
Each futures contract calls for delivery of one bitcoin held in the Bakkt Digital Asset Warehouse, and will trade in U.S. dollar terms. One daily contract will be listed for trading each Exchange Business Day.
The document further stated that the Bakkt Bitcoin (USD) Daily Futures Contract is a physically-settled daily futures contract for bitcoin held in Bakkt LLC. It is held in an ICE’s digital asset warehouse and will be cleared by ICE Clear US, Inc. Each futures contract calls for delivery of one bitcoin held in the Bakkt Digital Asset Warehouse and will trade in U.S. dollar terms. One daily contract will be listed for trading each exchange business day.
Bakkt was advertised earlier this year when ICE proclaimed its plan to “an open and regulated, global ecosystem for digital assets.” At the time, the ICE also said that it would grant a one-day bitcoin futures contract, suggesting consumers can draw their futures commodities out to get bitcoin, rather than cash.
ICE FUTURES U.S.
ICE Futures U.S. gives corporally presented periodic futures contracts on Bitcoin traded in BTC/USD (subject to regulatory approval). These contracts will be exchanged on ICE’s electronic trading platform, which grants industry-leading speed and security, controlled by the CFTC. All trades are freed and supported by ICE Clearing US, the principal counterparty for all ICE absolved forex futures trades. Trades will result in corporally delivered Bitcoin in ICE’s regulated Digital Asset Warehouse. Exchange members are fit to negotiate with any other market members. ICE physically delivered bitcoin futures allow trading and hedging possibilities.
According to its website, Bakkt is a public, seamless global system which allows people to buy, sell, stock and dispense digital assets easily, securely and efficiently. It is supported by Intercontinental Exchange’s proven commercial exchange foundation and technology, Bakkt’s guarded global platform will unite investors, retailers and users, making it simpler, speedier and more cost-effective to obtain, trade and utilize digital assets. Bakkt’s open-source, impartial platform will be composed to satisfy appropriate administrative necessities and to promote reform around digital assets and blockchain applications.
As previously reported, The Bakkt platform is likely to include regulated markets and warehousing along with merchant and consumer applications. Its primary use will be for trading and transformation of Bitcoin versus fiat currencies, as Bitcoin is today the most liquid digital currency.
Jeffrey C. Sprecher, Founder, Chairman and CEO of Intercontinental Exchange had said that:
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.
The company has used Microsoft cloud solutions to create an open and regulated cryptocurrency platform. It was also working with companies like BCG, Microsoft, Starbucks, and others, to create an integrated platform that allows clients and to purchase, sell, store and spend digital assets on a seamless global network.
ICE is an American company that owns exchanges for financial and commodity markets and operates 23 regulated exchanges and marketplaces. This includes ICE futures exchanges in the United States, Canada, and Europe.
Intercontinental Exchange (NYSE: ICE) is a Fortune 500 and Fortune Future 50 company established in the year 2000 to improve markets. ICE helps clients by running the exchanges, clearing houses and data services they rely upon to invest, trade and control risk across global financial and commodity markets. A pilot in market data, ICE Data Services assists the data and connectivity requirements across implicitly all asset classes. It is the parent organization of the New York Stock Exchange, which has supported firms raise extra capital than any other exchange in the world, making economic germination and changing markets.