Intercontinental Exchange ICE the owner of the New York Stock Exchange NYSE has announced that will list a physically settled bitcoin futures contracts and form a new company whose mission is to make bitcoin a mainstream financial asset.
ICE to Launch Physically-Settled Bitcoin Futures
ICE made the groundbreaking announcement on Friday, revealing that the new platform — Bakkt — has been developed in partnership with a variety of blockbuster names, including Microsoft, Starbucks, and BCG.
Bakkt will integrate with the ICE’s U.S. futures market and clearinghouse to list a physically-settled one-day bitcoin futuresproduct, complete with physical warehousing managed in-house by ICE. This product will launch in November, pending regulatory approval.
Because ICE one of the biggest names in finance will serve as custodian for all assets stored on the Bakkt platform, institutional investors such as pensions, endowments, and insurance companies may be less hesitant to take a bet on this burgeoning asset class. As CCN reported, analysts and others with knowledge of the institutional investing landscape had consistently fingered a lack of a respected, regulated custodian as the primary reason that institutions were staying away from bitcoin.
“Bakkt is designed to serve as a scalable on-ramp for institutional, merchant and consumer participation in digital assets by promoting greater efficiency, security and utility said K L CEO of Bakkt. “We are collaborating to build an open platform that helps unlock the transformative potential of digital assets across global markets and commerce.
However, far from just a bitcoin futures exchange, Bakkt — whose other investors include Microsoft subsidiary M12, Fortress, Susquehanna, Pantera Capital and Galaxy Digital — is intended to be a full-fledged platform that helps digital assets evolve into a mainstream financial asset class.
“In bringing regulated, connected infrastructure together with institutional and consumer applications for digital assets, we aim to build confidence in the asset class on a global scale, consistent with our track record of bringing transparency and trust to previously unregulated markets,said C. Sprecher, founder, chairman, and CEO of Intercontinental Exchange.
The bitcoin price saw moderate bump in the hours following the announcement, rising as high as $7,503 on Bitfinex after dipping as far as $7,282 earlier in the day.
pivotal role in developing practical, trusted and regulated applications for consumers to convert their digital assets into US dollars for use at Starbucks, tanveer Vice President, Partnerships and Payments for Starbucks. As a leader in Mobile Pay to our more than 15 million Starbucks Rewards members, Starbucks is committed to innovation for expanding payment options for our customers.
But while ICE believes it
As the flagship retailer, Starbucks will play a pivotal role in developing practical, trusted and regulated applications for consumers to convert their digital assets into US dollars for use at Starbucks,” Smith, Vice President, Partnerships and Payments for Starbucks. “As a leader in Mobile Pay to our more than 15 million Starbucks Rewards members, Starbucks is committed to innovation for expanding payment options for our customers.”The bitcoin price saw moderate bump in the hours following the announcement, rising as high as $7,503 on Bitfinex after dipping as far as $7,282 earlier in the day.
