Bakkt has won approval from US regulators to trade physically-settled bitcoin futures, a move many believe would legitimize the cryptocurrency industry before institutional investors.


Bakkt has won approval from US regulators to trade physically-settled bitcoin futures, a move many believe would legitimize the cryptocurrency industry before institutional investors. 

The Intercontinental Exchange’s subsidiary announced on Friday that the New York Department of Financial Services (NYDFS) had given them clearance to acquire a New York state trust charter. That would provide Bakkt permission to operate as a Limited Liability Company (LLC), which means it can now custody bitcoins for physically delivered futures. The firm expects to launch the service on September 23. 

In a blog post published Friday, Bakkt CEO Kelly Loeffler wrote that their bitcoin futures contracts have already received approval from the Commodity Futures Trading Commission (CFTC) through a self-certification process. Now, with a nod from NYDFS, Bakkt will introduce an institutional-grade custodial solution, called the Bakkt Warehouse, to meet the highest standard of oversight. Loeffler went on to add: 
“Bakkt bitcoin futures contracts will not rely upon unregulated spot markets for settlement prices, thus serving as a transparent price discovery mechanism for the benchmark price for bitcoin. The importance of this differentiator is only amplified by reports of significant manipulative spot market activity, and other concerns such as inconsistent anti-money-laundering policies and weak compliance controls.” 

By: bittomine | 2019-08-18 11:30:38 | Categories: crypto, news, blockchain