Bakkt to begin testing Bitcoin trading, futures and custody in July

13 May, 2019
by Will Heasman
Breaking News
Bakkt to begin testing Bitcoin trading, futures and custody in July

Today within a post on Medium Bakkt CEO, Kelly Loeffler, announced that the firm will begin user acceptance testing for Bitcoin futures custody, and trading in July.

After months of delays and speculation, Bakkt has finally set a date for the initial testing phases of Bitcoin futures contacts developed by the firm in collaboration with company ICE futures US and ICE Clear US.

The post conveys how Bakkt has worked closely with the Commodity Futures Trading Commission (CFTC) in order to provide market certainty and regulatory compliance.

“In conjunction with our exchange and clearing partners at ICE, we’ll be working with our customers over the next several weeks to prepare for user acceptance testing (UAT) for futures and custody, which we expect to start in July. We’ll provide more details in upcoming posts, but we expect to use UAT to ensure that customers have time to onboard and can test the trading and custody model we’ve built to their satisfaction,” reads the post.

Two new Bitcoin futures
Bakkt will introduce two new Bitcoin futures contracts in a federally regulated futures exchange in the coming months: a daily settlement Bitcoin future which will enable customers to transact in a same-day market, and a monthly Bitcoin futures contract that enables traders 'trading in the front month and across the forward pricing curve.'

According to the Bakkt statement, the futures contracts will be margined by ICE Clear US. Next to that, Bakkt will contribute $35 million into the clearinghouse risk waterfall. 'This puts our own “skin in the game” and aligns our interests for market integrity and safety with market participants', Bakkt says.

Bakkt will also offer a custody service for physical delivery and secure storage of Bitcoin. 'Safekeeping will be supported by insurance, cybersecurity, and comprehensive compliance, including an anti-money-laundering program and blockchain analytics.'

The launch of the Bakkt futures exchange is seen as a major push for Bitcoin, that soon after the Bakkt news jumped to above $7400.

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Read more about: Bakkt Bitcoin (BTC)

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