Bakkt gets approval to launch Bitcoin Futures

Cryptocurrency payment system and futures trading platform, Bakkt made an announcement on 16 August regarding their approval from the New York State Department of Financial Services (NYDFS). 

The blog post commenced stating that, Bakkt, in partnership with ICE Futures U.S. and ICE Clear U.S., anticipates to launch custody and physically – delivered daily and monthly bitcoin futures contracts by 23rd September. 

Post their approval from NYDFS, the Intercontinental Exchange’s subsidiary aspires to provide its users with regulatory transparency and security alongside a monitored, globally accessible exchange market. 

Bakkt in the blog post highlights that they have taken measures to increase the confidence of customers, regulators, and market participants towards the industry. In the past few weeks, the trading platform firm has hosted events in New York and Chicago, including their conversation with CTFC commissioner Dawan Stump and SEC commissioner Hester Peirce

The blog post stated-

“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.”

The blog post further added that Bakkts Bitcoin futures contracts would not reply upon unregulated spot markets for settlement prices, thereby making its benchmark Bitcoin price transparent. This eliminates the risk of manipulative spot market activities. 

NYDFS-approval-paves-the-way-for-Bakkts-to-launch-Bitcoin-futures

The firm emphasized that it aims to provide a trusted ecosystem. Bakkt also claims to have designed the Bakkt Warehouse to offer regulated and secure custody of Bitcoin that is protected by 125 million U.S. Dollars in insurance. 

The blog post concluded by stating that Bakkt is excited to support the future of digital assets and will continue onboard testing until the launch dated September 23. 

On 14th June, Bakkt COO Adam White expressed how the firm is a friendly solution to building safety and security in bitcoin and other digital assets. David further stated that Bakkt had initiated user acceptance testing for Bitcoin futures from late July.