Bakkt is a platform that allows investors to work with physically-settled Bitcoin futures contracts. The platform recently got a green signal to use its Warehouse Custody platform for institutions all over the world to store their Bitcoin in custody as well. Earlier, the service was only available to the clients trading in Bakkt Bitcoin Futures contracts.
Soon after this, Bakkt is planning to expand its horizon for services as they wish to offer a cash-settled version for Bitcoin futures due to high customer demand. It’s chief Adam White mentioned this at the Invest: NYC Conference.
Bakkt is a part of the Intercontinental Exchange (ICE), which is the parent company of the New York Stock Exchange, might offer these cash-settled Bitcoin futures by using ICE’s Singapore extension, ICE Clear Singapore. They plan to make the product accessible worldwide to increase global adoption and trade.
Bakkt rivalry with CME Group
The biggest competition for is the derivatives exchange giant CME Group which is the only provider of cash-settled Bitcoin futures contracts in the world right now. Bakkt is launching the new product with the vision of beating CME in both, cash-settled Bitcoin futures as well as at the Bitcoin options contracts. CME is planning to launch the options product by January 2020.
Bakkt is discussing the future of planned product with the Monetary Authority of Singapore, financial regulatory authority, and country’s central bank.