The Bact has been cleared to launch.
On Friday, a young subsidiary of the Intercontinental Exchange announced the acquisition of the New York State Trust Charter through the New York State Department of Financial Services (NYDFS). Approval paves the way for the company to start offering its long-awaited physically sound bitcoin futures contracts. The company intends to launch its products on September 23.
First introduced in August last year, Bakkt was working on regulatory approval to begin offering products over the past year. He intends to offer two types of contracts: daily and monthly contract. Both will be housed in Bakkt Warehouse, part of its New York-based trust company.
On her blog on Friday, Bakkt CEO Kelly Loefler wrote: “Our contracts have already received green light from the CFTC through a self-certification process, and user acceptance testing has begun.”
“With the approval of the New York State Department of Financial Services to create the Bakkt Trust Company, a qualified custodian, Bakkt Warehouse will store bitcoins for physically delivered futures,” she said. “This provides customers with unprecedented clarity and security of regulations along with a regulated, globally accessible exchange in a market that is not provided with institutional infrastructure.”
“It is unique that Bakkt's bitcoin futures contracts will not rely on unregulated spot markets for settlement prices, thus serving as a transparent pricing mechanism for the reference price for bitcoin.” The importance of this differentiator is only reinforced by reports of significant manipulative activity in the spot market and other issues, such as inconsistent anti-money laundering policies and poor enforcement. ”
Image of Kelly Loffler from CoinDesk archives