Launch of the long-awaited Bitcoin futures platform Bakkt faces another regulatory hurdle.
Bakkt, which is owned by the Intercontinental Exchange (ICE), is awaiting approval by the Bakkt Trust Company LLC from the Financial Services Department of New York. The trust will give Bakkt the opportunity to act as a qualified custodian and play a decisive role in the company's physical settlement of contracts at BTC.
A recent letter from Bakkt details the company's efforts to obtain approval and describes how the trust will lend to customers with a leading cryptocurrency.
“Supplies under Bitcoin Contracts will be made through Bakkt Trust Company LLC (“ Warehouse ”), which has applied for licensing as a trust company limited by the New York State Department of Financial Services. Bitcoin contracts require market participants to deposit in a Bitcoin warehouse, necessary to cover their delivery obligations for short positions in Bitcoin contracts that are delivered ...
The warehouse will be credited to the corresponding Bitcoin account transferred by the market participant or on its behalf to the warehouse. As for such Bitcoin, the Warehouse will be registered as a holder for the purposes of a public blockchain or other ledger constituting the “external network” for such Bitcoin, and the Warehouse, in turn, will credit such Bitcoin to the Account of the Market Participant’s Account and records.
Bakkt says that ICE Futures USA will certify its futures contracts in accordance with the rules and in coordination with the Commodity Futures Trading Commission.
After participating in a Bakkt in New York Summit on Institutional Digital Assets in New York, market research analyst Sam Doctors from Fundstrat said that apparently the “critical mass” of institutional followers are ready to begin using the platform on the first day.
We think #Bakkt could be a huge catalyst for institutional participation in the #crypto market. Here are our takeaways from the Bakkt institutional summit yesterday at the NYSE ... #bitcoin #BTC #ETH @fundstrat @fundstrat_ken pic.twitter.com/lkRylD1P4C
- Sam Doctor (@fundstratQuant) July 19, 2019
Fundstrat recently announced that Bakkt is now planning to launch in the third quarter of this year.