What is Bakkt?

International Exchange (ICE) is set to launch their own cryptocurrency exchange — Bakkt. This new development is getting a lot of attention from the crypto community because ICE is a major entrant in the crypto world. In this post,we will tell you everything you need to know about the Bakkt and what will be the possible impact of Bakkt on Bitcoin and Crypto World. Let’s get started.

 

What is Bakkt?

Bakkt is a new cryptocurrency exchange which is backed by the ICE. ICE is not an ordinary company, it owns the New York Stock Exchange (NYSE) which has more than $85 billion worth of assets. So think of Bakkt as a sister company to the NYSE and it will share the same trust of investors.

Bakktexchange will offer the 1-day futures, which are physically backed by Bitcoin which will be delivered on the next day to the contract buyer. Trading on Bakkt will be fully collateralized which means that their contracts will not be able to trade on margin, leverage or otherwise. It alone will differentiate the Bakkt from other conventional crypto exchanges and futures.

 

Bakktalso has three main goals. The first goal is to streamline the crypto payments and move the consumers away from the credit cards. The second goal is to bring the same level of trust and protection for Bitcoin as other assets like stocks, bonds in the traditional market. The third goal is to get the big institutions, regulators, online stores and consumers to adopt the Bitcoin.

The possible impact of Bakkt on Bitcoin and Crypto World.

ICE is a well-known company and they have arelation with big companies around the world. ICE has the intention to transform the Bitcoin into a trusted global currency where users will be able to use it for their day-to-day transactions. Bakktis their attempt to change their intention into reality. ICE is aiming to bring the first SEC-approved Bitcoin ETF which will surely attract a lot of investors. However, SEC has also denied all ETFs request in the last years but if Bakktis able to get the approval from SEC it will be a major breakthrough.

 

Microsoft and Starbucks are also involved in the BakktProject. If Bakktgetsthe approval from the SEC, then both companies have a lot to gain from this development. Starbucks will accept the payments from the customer who use Bakkt and this will help the company to streamline the online and in-person payments but also result in reduced transactions fees. Microsoft also has similarintentions to get benefits from Bakkt.

In short, if Bakkt gets the approval from the SEC, it will not only impact the Bitcoin but it will impact the whole crypto world. In a statement by ICE, Kelly Loeffler, CEO of Bakktsaid: “We are collaborating to build an open platform that helps unlock the transformative potential of digital assets across global markets and commerce”. The big companies like Starbucks and Microsoft will play a pivotal role in the success of Bakkt. The platform is set to launch in November 2018 depending on the approval. Let us know what you think about Bakkt and its possible impact on bitcoin in the comment section below.