The entry of institutional investors is seen as the starting signal for the next Bitcoin bull run and the inflow of fresh capital for the crypto market. Yesterday, the parent company of the New York Stock Exchange (NYSE) announced that it intends to open its own platform where institutional traders and ordinary clients can trade digital assets as well as “physical” Bitcoin futures.
Intercontinental Exchange, the parent company behind the New York Stock Exchange, plans to launch “Bakkt,” a new platform for trading cryptocurrencies and digital assets that is fully regulated and monitored using the same technology as current stock markets.
Some of the well known project partners are Microsoft, BCG and Starbucks. Kelly Loeffler, CEO of Bakkt, stated in the official press release that the platform will be freely accessible to any type of trader and should generate an estimated $ 270 billion in sales volume.
The Bakkt ecosystem is expected to include federally regulated markets and warehousing, as well as merchant and consumer applications. The first use cases will be for the trade and conversion of Bitcoin to Fiat currencies since Bitcoin is today the most liquid cryptocurrency. Efforts will address changing needs in the estimated $ 270 billion digital assets market.
Initially, Bakkt will be a US-based futures exchange, which also has a clearinghouse. By November 2018, Bitcoin futures are to be introduced, which differ from those of the CME and the CBOE in such a way that “physical Bitcoins” are traded. This means that the actual value of Bitcoin must be paid in full and deposited as collateral.
The bitcoins should thereby be stored “physically” as well as secured by a separate guarantee fund in order to prevent similar situations as in the case of the stock exchange OKEx. All companies involved should be fully regulated under US law and thus comply with the requirements of the legal framework.
Jeffrey C., head of the Intercontinental Exchange, said at the press conference that the new platform should boost public confidence in the new asset class (bitcoin and cryptocurrency):
“By bringing a regulated, networked infrastructure together with institutional and consumer applications for digital assets, we want to strengthen the confidence in the asset class on a global scale, in line with our track record of bringing transparency and confidence to previously unregulated markets.”
Microsoft’s cloud solutions should make an important contribution to the project. Starbucks will contribute expertise in the area of mobile payments, but for the time being no further details are known.
Whether or not the launch of the Bakkt Stock Exchange will actually catapult the prices of the cryptocurrencies into the sky remains to be seen for the time being. However, this development is likely to make a significant contribution to the adaptation of cryptocurrencies in the population and to the establishment of digital currencies as a potential asset class. Cryptocurrencies have come to stay.
The price of Bitcoin moves within the last 24 sideways and recorded a slight increase of 1.32 percent at a price of 7482.30 USD. The Bitcoin dominance is at the time of writing at 48.12 percent.