Bakkt Acquires Crypto Custodian, Establishes New Partnership
Bakkt has made a huge step in the crypto space. Apparently, the Intercontinental Exchange (ICE)-lead institutional crypto trading platform has managed to acquire a digital currency custodian service. Here is everything about it in a nutshell.
An Array Of New Measures
The company made the announcement via its official blog post, suggesting that a handful of new measures are being implemented. Basically, they are needed in its continuous effort of stimulating regulatory feedback. And yes, one of these included the acquisition of the Digital Asset Custody Company (DACC).
It holds true that DACC’s very own native support of 13 blockchains and more than 100 assets is meant for serving as “an important accelerator.” However, the entire team is expected to join Bakkt. This is further confirmed via a blog post courtesy of Adam White, the new COO of the crypto trading platform and former exec at Coinbase.
As announced in the same post, White claimed that the company has already filed an application with the New York Department of Financial Services. The application, in particular, is meant to get approval to operate as a trust firm, allowing it to become a Qualified Custodian meant for digital assets.
Launching BTC Futures
Moreover, Bakkt explained that the firm is hoping to launch physically-delivered BTC futures alongside contracts that are set to be traded on ICE Futures US (IFUS). Even more so, these Bitcoin futures will be cleared on ICE Clear US (ICUS). The ICUS is not only an exchange that is federally regulated but also a clearing house. In addition, it is being regulated by the CFTC or the United States Commodity Futures Trading Commission.
In a previous report, ICE was entertaining the idea of acquiring a New York BitLicense in an attempt to bring forth Bitcoin futures. Although it was never confirmed official, reports managed to cite anonymous sources familiar with the narrative.
Kelly Loeffler, Bakkt’s very own CEO, was said to have claimed that the company will not change its overall strategy. However, it hopes to define its main role within the industry it is part of.
In an interview, Loeffler said that there is yet to be a “pivot.” Since time immemorial, the ICE has been trying to build the safest custody solution designed for digital assets. It is worth noting that ICE is known to be the sole operator of at least 23 major global exchanges.