sludgefeed.com
The long-awaited launch of Intercontinental Exchange’s (ICE) crypto exchange subsidiary, Bakkt, could be just around the corner.
According to a recent report by The Block, Bakkt is gearing up for a Q3 launch date for its Bitcoin (BTC) futures, pending the approval of the New York Department of Financial Services (NYDFS).
The holdup is reportedly due to the need for regulatory approval of Bakkt Warehouse, which would enable Bakkt to operate as a limited-purpose trust company to serve as a qualified custodian for the physically-delivered Bitcoin futures.
Bakkt has been also been working closely with the CFTC to develop futures contracts that both meet their customers’ trading requirements while keeping with current federal regulations.
The exchange plans to launch two futures contracts with daily and monthly settlement periods. The price formation in the contracts will not rely on unregulated cash markets, as part of an effort to reduce the current issue of wash trading. Instead, Bakkt’s products will be based on prices discovered in their physical delivery contracts.
Today kicks off user acceptance testing @ICE_Markets for the Bakkt Bitcoin Daily & Monthly Futures contracts
Testing is proceeding as planned with participants from around the world
— Bakkt (@Bakkt) July 22, 2019
The company conducted its first testing earlier this month, where clients from around the world reportedly participated in Bitcoin trading. Bakkt had previously targetted a July launch date for its Bitcoin futures.