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The Bitcoin futures trading platform of the Intercontinental Exchange (ICE), Bakkt, has announced plans to launch user acceptance testing for Bitcoin futures trading and custody in July.
Bakkt Accelerates
Bakkt, the Bitcoin futures trading platform of ICE, the operator of the New York Stock Exchange (NYSE), has announced that it will begin user acceptance testing for Bitcoin futures trading and custody in July.
In an official blog post, Kelly Loeffler, the CEO at Bakkt, detailed bitcoin futures traded on the platform will be listed on a federally regulated futures exchange in the upcoming months. Besides that, the executive also outlines that the upcoming bitcoin futures contracts offer “unique trading, security, and risk management features.”
The announcement comes roughly around a month after Bakkt hired a new Chief Product Officer (CPO) – Mike Blandina. The latter has experience in working with PayPal as Head of Payments and Credit Engineering, as well as at Google as a Director of Engineering for their wallet service.
Two Types of Bitcoin Futures Contracts
Perhaps one of the more interesting bits of information in Bakkt’s newest release is the fact that they will launch two types of Bitcoin futures contract. The first one will enable customers to transact in a same-day market as it is a daily settlement bitcoin future. The second one will have a monthly settlement and will provide investors with the option to trade in the front month.
Moreover, the price formation for these contracts will be supported by “proven tools” which are supposedly geared to detect abusive and disruptive trading practices such as wash trading.
Bakkt will also contribute $35 million within its clearinghouse risk waterfall. Additionally, the physical delivery and the secure storage of Bitcoin will be carried out through an integrated custody service which is subjected to regulatory approval.
This is necessary because Bakkt will launch physically delivered bitcoin futures, meaning that the traders will receive the contract’s underlying asset upon settlement, rather than its cash equivalent.