Bakkt Kicks off Test-Launch Phase for Physical Bitcoin BTC Futures
- During the test-launch phase, aka “user acceptance testing”, each contract on the Bakkt's platform will consist of one bitcoin.
Testing of Bakkt's Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term futures contracts starts today as the ICE-backed Startup Startup A company operating within its first stage of investing is known as a startup. While startups may give the impression that the company must be new, that is not always the case.Many companies can have this designation after nearly three years of existence. Typically, a company exits the startup status after a period between 3 to 5 years or after successful funding rounds where capital is acquired. Startups tend to derive out of the belief that there is a demand for a service or product which is c A company operating within its first stage of investing is known as a startup. While startups may give the impression that the company must be new, that is not always the case.Many companies can have this designation after nearly three years of existence. Typically, a company exits the startup status after a period between 3 to 5 years or after successful funding rounds where capital is acquired. Startups tend to derive out of the belief that there is a demand for a service or product which is c Read this Term is trying out the underlying infrastructure to see how things will evolve before it launches its much-anticipated product to the masses.
The new Bitcoin offering involves two futures contracts; daily future contract, which will enable customers to transact in a same-day market, and a monthly bitcoin futures contract. The contracts will be margined by ICE Clear US, including the collection of initial margin collateral and variation margin to manage risk.
During the test-launch phase, aka “user acceptance testing,” each contract on the Bakkt's platform will consist of one bitcoin with a minimum tick size for trading set at $2.50 per bitcoin. The futures contract will be cleared through ICE Clear US, which also clears trades for NYSE.
COO Adam White previously shared a figure illustrating the benefits that institutions would expect when they trade with their yet-to-launch crypto venue. The list includes block trades; a fee holiday through the end of the year; market maker incentive programs to encourage liquid markets; and integrations with ISVs and regulated brokerage platforms.
Resolving the custodian issue
And in order to placate the CFTC, the physical delivery and storage of bitcoin will be provided by Bakkt’s qualified custodian. This was the issue that has made the agency most concerned about the NYSE owner’s product as crypto assets have been vulnerable to the risks of possible theft and manipulation.
Bakkt also revealed that it would pay $35 million to contribute to arrangements of hedging against clearing risks. “This puts our own “skin in the game” and aligns our interests for market integrity and safety with market participants,” said CEO Loeffler.
Earlier this year, Bakkt acquired Digital Asset Custody Company (DACC), which provides cryptocurrency custody solution for institutional investors and token issuers holding digital assets. The takeover should help Bakkt secure the NY regulator’s approval to operate as a so-called ‘qualified custodian,’ which permits the company itself to hold custody of customers’ tokens. In addition, Bakkt also announced it has partnered with BNY Mellon to offer geographically-distributed storage of private keys secured by the bank.
Testing of Bakkt's Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term futures contracts starts today as the ICE-backed Startup Startup A company operating within its first stage of investing is known as a startup. While startups may give the impression that the company must be new, that is not always the case.Many companies can have this designation after nearly three years of existence. Typically, a company exits the startup status after a period between 3 to 5 years or after successful funding rounds where capital is acquired. Startups tend to derive out of the belief that there is a demand for a service or product which is c A company operating within its first stage of investing is known as a startup. While startups may give the impression that the company must be new, that is not always the case.Many companies can have this designation after nearly three years of existence. Typically, a company exits the startup status after a period between 3 to 5 years or after successful funding rounds where capital is acquired. Startups tend to derive out of the belief that there is a demand for a service or product which is c Read this Term is trying out the underlying infrastructure to see how things will evolve before it launches its much-anticipated product to the masses.
The new Bitcoin offering involves two futures contracts; daily future contract, which will enable customers to transact in a same-day market, and a monthly bitcoin futures contract. The contracts will be margined by ICE Clear US, including the collection of initial margin collateral and variation margin to manage risk.
During the test-launch phase, aka “user acceptance testing,” each contract on the Bakkt's platform will consist of one bitcoin with a minimum tick size for trading set at $2.50 per bitcoin. The futures contract will be cleared through ICE Clear US, which also clears trades for NYSE.
COO Adam White previously shared a figure illustrating the benefits that institutions would expect when they trade with their yet-to-launch crypto venue. The list includes block trades; a fee holiday through the end of the year; market maker incentive programs to encourage liquid markets; and integrations with ISVs and regulated brokerage platforms.
Resolving the custodian issue
And in order to placate the CFTC, the physical delivery and storage of bitcoin will be provided by Bakkt’s qualified custodian. This was the issue that has made the agency most concerned about the NYSE owner’s product as crypto assets have been vulnerable to the risks of possible theft and manipulation.
Bakkt also revealed that it would pay $35 million to contribute to arrangements of hedging against clearing risks. “This puts our own “skin in the game” and aligns our interests for market integrity and safety with market participants,” said CEO Loeffler.
Earlier this year, Bakkt acquired Digital Asset Custody Company (DACC), which provides cryptocurrency custody solution for institutional investors and token issuers holding digital assets. The takeover should help Bakkt secure the NY regulator’s approval to operate as a so-called ‘qualified custodian,’ which permits the company itself to hold custody of customers’ tokens. In addition, Bakkt also announced it has partnered with BNY Mellon to offer geographically-distributed storage of private keys secured by the bank.