In a recent interview, Litecoin founder Charlie Lee stated that, while prices are “depressing”, it is an optimal time for developers to focus on the industry’s maturity. And it seems, some did just that, as a multinational announced an exciting new development towards Bakkt that will strengthen this industry in the long run.
Bakkt – Is the Biggest Krypton Message of the Year
A few weeks ago, the Intercontinental Exchange (ICE) announced that it intends to launch a platform by working with Starbucks, Microsoft and a number of A-list companies and funds. The platform, named Bakkt, aims to create a “scalable platform for the participation of institutions, traders, and consumers in digital assets by promoting greater efficiency, safety and value”.
While this news was released in the midst of a downtrend, Bakkt quickly became a topic of conversation, with industry leaders such as Tom Lee of Fundstrat and Brian Kelly of CNBC praising the future platform on several occasions.
Most recently, Bakkt has attracted the attention of the Ironwood Research Group (IRG), a team of researchers, analysts and traders. During the pending “Not Financial Advice Show” podcast this week, the IRG team spent over 14 minutes reviewing Bakkt to give viewers an insight into the platform.
The Slightly Different Futures
The group of analysts first raised Bakkt’s plans to establish a Bitcoin futures vehicle, which is likely to turn the industry on its head. In contrast to the already established CBOE and CME futures, the ICE-supported platform wants to physically cover its futures contract. IRG analyst Mike Strutton explained what this means for the price of Bitcoin:
“Since Bitcoin futures come from Bakkt, these are physically backed up, which means that Bitcoin will be bought and taken off the market and stored in the platform for the duration of these contracts. And they make these (contracts) in one-day transactions and do not leverage or trade margin. In my opinion, this information is really bullish for the market, especially if this [platform] comes out.”
Since it is likely to receive the CFTC label, this agreement has the potential to attract capital from thousands of investors, both private and institutional.
Three Major Partnerships Already in The Pipeline
The IRG analyst drew attention to ICE’s three largest partnerships, which according to Strutton are Microsoft, Starbucks, and the Boston Consulting Group. While Microsoft is rumoured to only play a role in the technical side of Bakkt, Starbucks’ involvement in the platform may prove to be “an interesting prospect as the retail giant could trigger the day-to-day introduction of crypto assets around the globe. Although the Bakkt platform is still in its infancy, well-known crypto personalities already refer to it as the Bitcoin message of the year.