Recently, New York Stock Exchanges’s Intercontinental Exchange [ICE] announced that they will be launching Bakkt, an exchange platform for cryptocurrency in the month of November 2018. The news spread like wildfire in the cryptocurrency space. The announcement was made days before the SEC’s stance on the VanEck ETF.
The announcement turned out to be the most controversial one because ICE stated that they have been working on the project for almost 9 months and in collaboration with Starbucks and Microsoft cloud solutions. Moreover, it is set to become the first regulated market for cryptocurrencies. This was one of the main factors taken into consideration by the SEC for rejecting the Winklevoss ETF.
ICE had stated that the platform would include federally regulated Bitcoin futures contract, markets, and warehousing with merchant and consumer applications.
On 20th August, the CEO of Bakkt, Kelly Loeffler, revealed more details of the much-awaited platform on her blog. On the blog, Kelly has laid down the ‘proven framework’. This includes having an established regulated framework, an efficient and transparent price discovery and a pre-trade and post-trade with institutional standards.
Bakkt on Twitter announced:
“With our solution the buying and selling of bitcoin is fully collateralized or pre-funded. Our new daily bitcoin contract will not be traded on margin, use leverage or serve to create a paper claim on a real asset.”
Moreover, Kelly highlighted that unlike other exchanges, Bakkt’s Bitcoin contract will not be traded on margin, use leverage or serve or create a paper claim on a real asset. According to her, this would differentiate Bakkt from the existing futures market and cryptocurrency exchanges which are providing margin, leverage, and cash settlement services while maintaining the market integrity.
The term margin trading refers to trading which involves borrowing funds. This service is provided by the exchanges, allowing customers of the platform to trade more than what
WANT TO KNOW MORE? READ FULL ARTICLE ON Ambcrypto
Disclaimer: No copyright infringement intended. The content presented in this article is only as a preview and completely belongs to Ambcrypto. Our site only helps interested users to get to the right content quickly. You can always see the full article here: https://ambcrypto.com/ice-bakkt-new-announcement-stirs-up-cryptocurrency-community/