Subsidiary ICE & Bitcoin

Bakkt, a subsidiary of the Intercontinental Exchange (ICE), is getting started with Bitcoin. ICE, which also owns the New York Stock Exchange, wants to use the new company to help consumers and institutions buy and sell bitcoins. While companies previously launched futures contracts, Bakkt seems to actually want to get involved with Bitcoin infrastructure.

In addition to facilitating the buying and selling of bitcoins, they also aim to realize regulated storage and applications for consumers. This in collaboration with parties such as Starbucks and Microsoft, according to the published blog post.

In November, the company wants to launch one-day contracts that actually hold bitcoins as collateral. This is in contrast to the previously mentioned cash-settled forward contracts. However, this plan still needs to be approved by the CFTC before the contracts can be traded.

The purpose of the physical delivery of the contracts is to create a well-founded price formation, without margin or leverage. This, coupled with constitutional infrastructure and improved consumer usage, are the critical steps to take to unleash Bitcoin’s potential as a sovereign digital money, according to Bakkt.

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