Cryptocurrency platform Bakkt will allow its users to store digital currencies in the Bakkt Warehouse from September 6.
The company made the announcement on Wednesday via a tweet and mentioned that the storage of Bitcoin would “prepare for the launch” of its upcoming futures contracts platform.
On Sept 6, our Warehouse will begin offering secure storage of customer bitcoin to prepare for the launch of Bakkt Bitcoin Daily & Monthly Futures when they launch on Sept 23
These contracts will enable physical delivery of bitcoin with end-to-end regulated markets and custody — Bakkt (@Bakkt) August 28, 2019
The Intercontinental Exchange-owned company also mentioned that it is set to launch its crypto futures platform on September 23 after obtaining a green light from the Commodity Futures Trading Commission (CFTC). Although the launch date was delayed several times due to regulatory holdups, it will be the first physically-settled Bitcoin futures contracts in the US.
It has already launched a test version of its platform last month to perform “user acceptance testing.”
Ending settlement price manipulation
Unlike CME Group, which offers cash-settled settled Bitcoin futures, Bakkt will offer physically settled contracts, meaning the trader will receive Bitcoins upon the expiry of the contract instead of fiat denominations.
The regulated exchange will also offer traders a daily margined product, which might turn out to be an alternative to spot trading.
Bakkt Warehouse is a part of Bakkt Trust Company and was developed with the same cybersecurity and infrastructure as in the New York Stock Exchange .
Earlier this year, Bakkt acquired Digital Asset Custody Company (DACC), which provides cryptocurrency custody solution to institutional investors and token issuers holding digital assets. The takeover helped 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.
Bakkt also announced that it has partnered with BNY Mellon to offer geographically-distributed storage of private keys secured by the bank.
