Bakkt, the crypto assets trading platform created by Intercontinental Exchange and backed by Microsoft and Starbucks, has revealed some details on its future plans.
According to a publication in Medium, Bakkt will be federally regulated and will offer transparent, efficient price discovery and an institutional quality pre- and post-trade infrastructure. There will be no option for trading on margin and no leverage will be offered. Instead, Bakkt will rely on trusted price information. And even though “price discovery” might sound bland and boring for something as exciting as cryptocurrencies, it is essential, Bakkt notes.
One of the main features of the Bakkt solution will be that the buying and selling of Bitcoin will be fully collateralized or pre-funded. “As such, our new daily Bitcoin contract will not be traded on margin, use leverage, or serve to create a paper claim on a real asset,” the publication reads. “This supports market integrity and differentiates our effort from existing futures and crypto exchanges which allow for margin, leverage and cash settlement.”
In addition Bakkt will offer solid and regulated market infrastructure that would make the crypto asset class more accessible both to institutions and the general public.
“Whether you’re an investment manager seeking federally regulated, institutional trading and security solutions or a consumer looking for more choice in transacting, we’re working to make the vision for wider application of digital assets a reality,” the post said.
Earlier this month Bakkt announced its launch, without giving much detail, except that it would offer the trading of physical bitcoin futures starting in November. The project includes the parent company of the New York Stock Exchange - Intercontinental Exchange – and Microsoft and Starbucks, among others. The involvement of Starbucks in it made some media run headlines suggesting that the popular coffee shop chain will start accepting Bitcoins, which forced it to publicly deny the claims and clarify that its involvement will be of more technical nature.