Bakkt platform: secure cryptocurrency purchase

What is Bakkt?

05 Dec, 2019 David Kemp

Bakkt itself is a large-scale platform designed to provide cryptomarket with the institutional investors inflow. The company is a sister organization of Intercontinental Exchange. The platform is one of the largest in the world, it manages 23 exchanges, including the new York NYSE. All the work done there is strictly monitored by the American financial market.

What you need to know about Bakkt

Bakkt's capitalization exceeds $ 740 million. Its main goal is forming the first regulated platform that will ensure the security of cryptographic currency purchase, storage and sale operations. The Digital Asset Custody Company was bought for this purpose, providing reliability of coins cold storage.

Money that will be stored in Bakkt wallets will be insured for up to $ 100 million.

The use of Bakkt futures

The team's target is, first of all, to launch one-day bitcoin futures with physical cryptocurrency delivery. The futures contract defines a specific date and sets the cost of obtaining the asset. This means it is possible to conclude a contract for buying bitcoin on a certain date at certain agreed price. Futures will be traded for fiat money. The article "The Importance of Bakkt for the crypto market" explains the platform's advantages in greater detail.

Bakkt was originally expected to be launched in December 2018, which is why its launch was postponed by a month. The official announcement of the test work took place in July 2019. According to Kayleigh Loeffler, the launch postponement took place due to technical difficulties. Other experts point out the problems with regulators.

Bakkt features

The platform will be fully regulated by United States financial authorities. It will secure the digital assets storage. Bakkt will offer both: cold and hot wallets for its users. The company stresses that it will fully comply with the KYC rules. This will help to prevent money laundering.

Major partners have been involved into financing the platform's development. Starbacks and Microsoft are among them.

Bakkt’s key advantages

The main advantages of the platform are:

  • Increasing trust in digital money
  • The company is part of the Fortune Future 50 and Fortune 500, it has been operating in the financial market since 2000
  • ICE is a confidently leading in the field of market information, it provides the required data and the ability to use almost all types of assets
  • Ownership of the world's largest market for ARCA ETFs and an cutting-edge platform for NYSE American
  • Availability of various operations and client assets storage
  • Implementation of advanced ideas for trading and market infrustructure work based on blockchain.
  • The company is confidently leading at various futures categories for agricultural products – such as coffee, sugar and cotton
  • The income of 4.6 billion according to the 2017 year results

The Bakkt introduction can be a real milestone in cryptocurrencies development. The conditions for major investors to enter the market will be created with its help. The platform will create the tools that are familiar to them as well as provide them with high security. Our crypto portal provides a wide range of information regarding digital assets and news in this field.