Bakkt Warehouse to start accepting bitcoin deposits from September 06
Thu, 29 Aug 2019, 04:51 am UTC
Bitcoin futures platform Bakkt has announced customers will be able to store their bitcoin in its warehouse, starting September 06.
The announcement comes as Bakkt prepares to launch its much-awaited futures contract offerings on September 23. It made the announcement in a tweet:
On Sept 6, our Warehouse will begin offering secure storage of customer bitcoin to prepare for the launch of Bakkt Bitcoin Daily & Monthly Futures when they launch on Sept 23— Bakkt (@Bakkt) August 28, 2019
These contracts will enable physical delivery of bitcoin with end-to-end regulated markets and custody
Owned by Intercontinental Exchange (ICE), the parent company of New York Stock Exchange (NYSE), Bakkt recently obtained a New York state trust charter from the New York State Department of Financial Services (NYDFS).
CEO Kelly Loeffler explained that the approval from the NYDFS allows them to create Bakkt Trust Company, a qualified custodian. Bakkt Warehouse, which is part of Bakkt Trust Company, will custody bitcoin for physically delivered futures.
Following the regulatory clearance, Bakkt is just days away from launching its physically-delivered daily and monthly bitcoin futures contracts, which were first announced last year. It commenced user acceptance testing last month.
A daily settlement bitcoin future will allow customers to transact in a same-day market, while monthly bitcoin futures contracts will enable trading in the front month and across the forward pricing curve. The contracts will be physically settled, which means “that the selling Clearing member would be required at settlement to deliver to the buying Clearing Member a specified quantity of Bitcoin.”
Speaking with CoinDesk, Loeffler said that the daily contract will be margined, but did not disclose how much leverage would be available on margined contracts. The details are expected to be announced in the forthcoming weeks.
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