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- Bakkt launches Bitcoin Future smart contract
- Federally Regulated Futures Exchange listing to follow
Bakkt, a self-proclaimed ecosystem designed to support regulated digital assets, today announced the launching of bitcoin futures contracts in an update on medium.
Bakkt developed the bitcoin futures in collaboration with ICE Futures U.S. and ICE Clear US, and it has been working with CFTC to ensure that a regulatory complaint and customer fulfilling smart contract.
The announcement was made by the Adam White, the COO at Bakkt, in a report which contains the company’s roadmap and approaches that would be used to secure digital asset storage.
While Bakkt hinted customers on the possibility of shaping initial product offering design, the latest ICE Futures U.S. filing with CFTC made known that a federally regulated futures exchange will be listing bitcoin futures in coming months.
With the latest development, Bakkt will be working with its clearing and exchange partners at ICE to execute acceptance testing (UAT) for futures and custody in the next few weeks.
The UAT is designed to help customers get acquainted with Bakkt system by testing the designed trading and custody model.
Bakkt revealed that it designed the new Bitcoin futures contract based on feedbacks from its stakeholders, as well as the need to uphold unique trading and maximum security.
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With two futures contracts, Bakkt will permit users to transact in a same-day market using the daily settlement bitcoin future, while the monthly bitcoin futures contract is designed to offer customers front month trading.
The new futures is fortified with Price formation to help identify abusive or disruptive trading activities, ensuring that prices on ICE Futures U.S is determined by prices discovered by Bakkt physical delivery contracts.
In order to align its interests for market integrity and participants’ safety, Bakkt disclosed that it will ‘contribute $35 million into the clearinghouse risk waterfall.’
However, safekeeping on Bakkt will be braced by insurance, comprehensive compliance and cybersecurity as well as an anti-money-laundering program and blockchain analytics. Subject to regulatory approval a qualified custodian at Bakkt will certify an integrated custody service for delivery and secure storage of Bitcoin.