Bakkt Says Crypto Custody Launch Imminent
Bakkt will begin storing customer Bitcoin on September 6th in preparation for its upcoming crypto futures marketplace.
The Intercontinental Exchange (ICE) subsidiary announced the custody launch in a tweet on Wednesday.
“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’s Bitcoin futures will be exchange-traded on ICE Futures U.S. and cleared through ICE Clear U.S., both of which are federally regulated by the U.S. Commodities Futures Trading Commission.
For storing purposes, the company has also gained approval from the New York Department of Financial Services to create Bakkt Trust Company LLC, a qualified custodian which will oversee the Bakkt Warehouse.
Says Kelly Loeffler, the company’s CEO,
“This offers customers unprecedented regulatory clarity and security alongside a regulated, globally accessible exchange in a market underserved by institutional-grade infrastructure…
By now, digital asset markets are global and well-developed, but they have largely been designed to serve retail customers rather than institutional participants. Bakkt is bridging that gap to access this market and solve for factors that have slowed institutional participation.
Whether concerns relate to a lack of liquidity, market quality and regulation, or issues with reliability, fees, and operational risks, we are addressing these challenges with a transparent offering.”