Bakkt recently revealed in a blog post on Medium more details about its forthcoming digital assets trading platform.
The post was the first one made since the newly founded company made its initial announcement this month. The platform received a lot of media attention due to their r corporate affiliations which include Starbucks, Microsoft, and the Intercontinental Exchange (ICE) company.
Bakkt plans on launching an exchange platform that will enable crypto trading at a professional and institutional level, allowing a “scalable on-ramp for institutional, merchant and consumer participation.” If the platform will be approved by the US Commodities and Futures Trading Commission (CFTC), the launch will happen in November 2018.
The upcoming platform’s list of corporate partners features BCG, Microsoft, and Starbucks, among others, which will further help the adoption process of cryptos by the mainstream public.
In yesterday’s Medium post, Kelly Loeffler, the CEO of Bakkt, detailed how the company will change the crypto exchange industry through “A consistent regulatory framework; transparent, efficient price discovery; and an institutional quality pre- and post-trade infrastructure.”
Loeffler’s post also emphasized the concept of “price discovery” which relies on less need for manipulated price movements, and because of this, they will work to offer reliable price information so as to gain adoption among institutions and corporations. To achieve this objective, Bakkt will not be offering margin trading, only Bitcoin sales which are fully collateralized and pre-funded.
She went on to say that “with our solution, the buying and selling of Bitcoin is fully collateralized or pre-funded. As such, our new daily Bitcoin contract will not be traded on margin, use leverage, or serve to create a paper claim on a real asset. This supports market integrity and differentiates our effort from existing futures and crypto exchanges which allow for margin, leverage and cash settlement.”
The CEO of Bakkt maintains an optimistic outlook regarding the future of the markets its associated technologies, in spite of the current bearish tendencies. Regarding the market dip, Loeffler said the following:
“At the same time, there are numerous reports that venture investing, initial coin offerings, and corporate R&D related to blockchain and digital assets are all on track to surpass 2017 levels. With the potential for efficiency and innovation, the focus on new applications and infrastructure indicates a strong appetite for this market and technology.”
Bakkt is one of the first platforms backed by a major US-based stock exchange which will enter the cryptocurrency world, and its actions will most likely set a precedent for others to follow. A similar case would be that of Nasdaq when it announced that the exchange would start operating in the crypto space.