Bakkt, a subsidiary of Intercontinental Exchange, is building an open, seamless global network to enable you to buy, sell, store and spend digital assets simply, safely and efficiently.
Bakkt: About the Platform
Bakkt’s solution is meant to be an open-source, neutral platform designed to meet regulatory requirements.
This will open the blockchain space to investors who require a secure platform and are not comfortable with non-custodial solutions.
Custodian service is an establishment that guarantees to securely hold someone else’s assets.
In the cryptocurrency space, custody gets complicated as the blockchain technology is still nascent: Even when applying extreme measures there is still chance that a vulnerability might appear leaving an asset irretrievably lost if not handled well.
That is why businesses with expertise in finance rather than in emerging technology prefer to use third party solutions for cryptoasset storage and custody.
However, the unclear regulatory standards make it difficult for anyone to actually offer this type of services.
Bakkt can effectively create a stepping stone for other businesses that want to come up with crypto custody solutions, warehousing or safeguarding of cryptoassets.
For now, Bakkt is only planning to work with Bitcoin.
- We are monitoring the business of cryptoasset custody here
Bakkt will act as a business crypto custody supporting regulated institutions in the blockchain industry. This solution will be more cost-effective than business custody products presently available and will also make trading and spending of the cryptoasset possible.
The difference between having exposure via Bakkt and trading a Bitcoin futures product (such as CBOE) is that positions via Bakkt are pre-funded: Bakkt purchases Bitcoin first and then it will offer its customers direct exposure via the funds it holds.
This proposition is expected to support innovation in blockchain applications development and make digital asset markets more liquid.
In coordination with Bakkt, ICE Futures US and ICE Clear US plans to launch physically delivered bitcoin futures, once approved by regulatory organizations.
The Business Intelligence for Bakkt
Bakkt is a subsidiary of Intercontinental Exchange with headquarters in Atlanta, USA at 5660 New Northside Dr NW.
At first, Bakkt is planning to address requirements of regulated institutions and their clients and stakeholders.
Bakkt is certainly not the first ever initiative with the goal to make cryptoassets more liquid and accessible.
The CEO Kelly Loeffler mentions the following points as competitive advantage of Bakkt:
- Leveraging already established infrastructure of regulated futures markets: Institutional-grade on-boarding and compliance will be included in the process of physical delivery and custody of BTC.
- Bakkt’s futures contracts will be physically delivered in BTC, not in a fiat currency.
- State of art security: Safeguarding of crypto assets is an emerging industry. Bakkt claims to be using methods like biometric scans, sharding and multi-sig.
- Bakkt will rely on different participation agreements than OTC markets, other than that it is also subject to different standards of regulatory oversight and reporting.
For cryptocurrency traders, it is worth expanding on the last point:
Bakkt will be working against the fragmentation of markets and information we see on the cryptocurrency markets. For instance, OTC makes a major part of today’s bitcoin transaction volume but there is no information about it available other than for the parties directly involved in each transaction. Bakkt on the other hand will actively contribute to the price discovery process on cryptocurrency markets.
Standards of the procedures necessary to implement these points are subject to final review and approval by the US CFTC.
The Bakkt project itself was started by finance industry heavyweights - ICE, Bakkt’s parent company, is the owner of the New York Stock Exchange (NYSE) and therefore has an established business relationship with banks like JP Morgan.
The project leverages several high-profile partnerships:
- Bakkt is backed by Intercontinental Exchange’s already established financial market infrastructure and technology.
- Microsoft is contributing to Bakkt through their cloud computing platform Azure.
- Starbucks will be the Bakkt’s flagship retailer.
- Bakkt will also be launched in partnership with Boston Consulting Group.
More & Better:
Email alerts (2-3 a week)
- Opinions, Analyses & Interviews
- Industry News Releases
- Blockchain Tech Intelligence
Data is beautiful
Blockchain Technology in Mobile App Market: State of the Industry 2020
Blockchain is currently at the top among the new trending technologies that came up in recent years. It is a remarkable innovation for our ever more digitalised world. Blockchain is mostly known as decentralized network,...
New Horizons in Fintech: Payments, Big Data and Partnerships [Infographic]
The global fintech market saw a period of consolidation in 2018, which is exactly what we saw also in terms of price evaluation of crypto assets. In spite of the “crypto winter”, which is apparently...
Brand development in forex and crypto: Most expensive domain names [Infographic]
Crypto infographics - Most expensive domain names in forex and crypto. Targeted brand development in forex and crypto with domain names.
Top 8 Women in Blockchain Tech [Infographic]
When it comes to women in crypto, the pre-2016 OG heads will probably come up with names like Alena Vranova and Blythe Masters. Alena Vranova is the former CEO of Satoshi Labs, the company that...
Infographic: Blockchain Technology, Ledgers, Blocks and the Role of Price
Blockchain technology 101: What is blockchain, what types of blockchains exist and what role does the cryptocurrency price play.
Infographic: The Good And The Bad Of ICOs
Infographic: The good and bad of ICOs - Which token sales raised the most money in 2018?
The Business of Esports: All The Numbers [Infographic]
Esports is a rapidly emerging category as a real sport. It’s even beginning to compete with traditional sports.
Shocking Facts About Cryptocurrency Heists [Infographic]
If there is one question in the history of Bitcoin that cannot be answered with anything more than an estimate, it is the problem of how much of Bitcoin’s supply is actually ever available on...
Comparing Forex Market with Crypto Markets [Infographic]
One of the few metrics that cryptocurrency markets have in common with the forex markets in 2018 is the high percentage of total trades being located on few most popular markets.
East vs. West: Which One Sides More With Blockchain?
Digital cash schemes were the holy grail of the late 90s, but since the bitcoin blockchain was invented, suddenly nobody in the West cares.
Blockchain Consortium in Trade Finance: 6 Notable Networks [Infographic]
The success of trade finance blockchain implementations depends on how widely they are adopted. That's why we have seen businesses form consortia based on similar interests.
Real-world companies that accept crypto payments [Infographic]
Infographic - Graphic map of businesses that let customers pay in bitcoin.
Infographic: Blockchain Hacks & Crypto Trading Platform heists 2018 vs 2017
Blockchain infographic comparing the biggest crypto heists of 2018 and 2017. In 2017 the focus lied more on ICOs, smart contracts and wallet.
15 crypto kings that are making history with their engagement in the field of cryptocurrencies
Coining The Bucks With Cryptocurrencies Have you ever wondered how much masters of the cryptocurrencies are worth? Like the guy who founded Ethereum, or the one who started Ripple, for example. The answer, in short,...
Industry News Releases
LocalCryptos, the non-custodial p2p platform, added a crypto-to-crypto exchange feature
LocalCryptos, formerly known as LocalEthereum, is currently the most popular non-custodial p2p market for cryptocurrencies....Read >>
- Montenegro to embrace blockchain technology in efforts to join the EU
- The Global Hackaton (April, Los Angeles) comes with free tickets to Crypto Invest Summit
- Etheremon celebrating #ChineseNewYear2019 with a series of bounties (Ends 8:00 AM UTC on Feb 11th)
- Crypto Marble dApp Game: Monopoly on Blockchain
- The dApp gaming platform VX Network launched the official VX Wallet in Apple App Store and Google Play
- Etheremon's first Chinese New Year Campaign: Chance to recall two rare mons