The COO of cryptocurrency platform Bakkt, Adam White, today said in Medium blog that the ICE-backed startup would begin testing its much-anticipated Bitcoin futures contracts on July 22.
Mr. White confirmed the firm’s ongoing collaboration with Intercontinental Exchange (ICE) which will act as Bakkt’s exchange and clearing partner, but he did not give any details about the exact date when the contracts trading would debut.
“On July 22, two days after Apollo 11’s 50th anniversary, Bakkt will initiate user acceptance testing for its bitcoin futures listed and traded at ICE Futures U.S. and cleared at ICE Clear US,” said the former Coinbase executive.
The new Bitcoin offering involves two futures contracts; daily future contract, which will enable customers to transact in a same-day market, and a monthly bitcoin futures contract. The contracts will be margined by ICE Clear US, including the collection of initial margin collateral and variation margin to manage risk.
Adam also shared a figure illustrating the benefits that institutions would expect when they trade with their yet-to-launch crypto venue. The list includes block trades; a fee holiday through the end of the year; market maker incentive programs to encourage liquid markets; and integrations with ISVs and regulated brokerage platforms.
It’s a game changer
In addition, price formation in these benchmark contracts will be supported by professional tools to detect abusive or disruptive trading practices, including wash trades.
Source: Medium
CEO Kelly Loeffler confirmed last month that Bakkt plans to start user acceptance testing (UAT) for futures and custody this summer, which was a strong indication on how she’s confident to settle the remaining issues with the US regulators. From the Bakkt’s perspective, however, this action only aims to ensure providing prospective clients with sufficient time to onboard and test its trading and custody models.
And in order to placate the CFTC, the physical delivery and storage of bitcoin will be provided by Bakkt’s qualified custodian. This was the issue that has made the agency most concerned about the NYSE owner’s product as crypto assets have been vulnerable to the risks of possible theft and manipulation.
