This article comes fromMedium, original author Kelly Loeffler (Bakkt CEO)

Odaily Translator |

Odaily Translator |

On August 16, Kelly Loeffler, CEO of Bakkt, a cryptocurrency trading platform under Intercontinental Exchange (ICE), published a post on Medium, announcing the time and related information for Bakkt to officially launch the Bitcoin futures contract. The full text is as follows:A year ago, we announced an ambitious vision to bring institutional infrastructure to digital assets through an end-to-end regulated marketplace,。

This vision will come to fruition on September 23rd when Bakkt will launch custodial and physically delivered daily and monthly Bitcoin futures contracts in partnership with ICE Futures US and ICE Clear USOur contract has been approved by the CFTC through the self-certification process and user acceptance testing has begun.Upon approval by the New York State Department of Financial Services (NYDFS), Bakkt will establish a qualified custodian, the Bakkt Trust Company.

This provides clients with unprecedented regulatory transparency and security, while providing a regulated, globally accessible exchange in a market lacking institutional-grade infrastructure services.

In recent weeks, we have hosted events in New York and Chicago, bringing together approximately 150 clients, regulators, and market participants to advance dialogue in our industry, including a fireside chat with CFTC Commissioner Dawn Stump (Note: Fireside Talk is a radio speaking format pioneered by U.S. President Franklin D. Roosevelt). In Chicago, we have a conversation with SEC Commissioner Hester Peirce about the regulation of digital assets, and we invite you to listen.

Although the inadequacy of the crypto market has been mentioned many times, the digital asset ecosystem is making significant progress in terms of players, platforms, and applications—not to mention continued rapid development in both bear and bull markets. Digital asset markets are global and well developed so far, but they primarily serve retail clients rather than institutional players. Bakkt is bridging this gap to enter this market and address the factors hindering institutional participation. Whether it's a lack of liquidity, market quality and regulation, or issues with reliability, fees and operational risk, we are addressing these challenges in a transparent manner.We start by bringing in a regulated, secure and qualified Bitcoin custodian to back our futures contracts.Bakkt Warehouse, part of the Bakkt Trust, uses cyber and physical security protections to support the world's most actively traded markets, including the New York Stock Exchange (NYSE).

Additionally, independent governance and compliance requirements for qualified custodians mean that Bakkt warehouses are designed to meet the highest standards of oversight.The special place is,The settlement price of the Bakkt Bitcoin futures contract is not dependent on the unregulated spot market, thereby providing a transparent price discovery mechanism for the Bitcoin benchmark price.

The significance of this discrepancy is only magnified by reports of significant manipulation in the spot market, as well as other concerns of violations of anti-money laundering policies and weak compliance controls.

Bakkt's bitcoin futures will be exchange-traded on ICE Futures US and settled on ICE Clear US, both of which are regulated by the CFTC. Regulated exchanges differ from trading platforms such as cryptocurrency spot markets in many ways, including risk management, compliance, and market surveillance.

Bakkt futures contracts will also be covered by ICE Clear US's existing guarantee fund. ICE Clear US has established risk waterfalls in several commodity markets. With the addition of these new futures contracts, the existing guarantee fund was increased by $35 million. Importantly, we designed Bakkt Warehouse to provide a regulated, secure Bitcoin custody service that is protected by $125 million in insurance.

Providing a trusted ecosystem is our primary goal. To this end, we are developing higher standards, including institutional compliance and anti-money laundering programs, settlement prices different from unregulated spot prices, comprehensive market supervision, guarantee fund contribution and insurance. And the trading and risk management tools that make this possible have been a long time in the making.

Looking back at the foresight of Milton Friedman (an American economist who won the Nobel Prize in Economics in 1976 and is known as one of the most important economists in the 20th century) in 1999, when the Internet had just gained a foothold, he predicted that the future Internet will connect The clear view of the economy is amazing:

"One thing that is currently missing but will soon be developed is a reliable electronic cash, a way to shop online -- you can transfer money from A to B without both parties knowing about each other."

Though thought-provoking, this statement may have gone unnoticed at the time. But 10 years later, the watershed Bitcoin white paper and blockchain came out. Today, we are helping institutions, consumers, policymakers and regulators participate in this emerging market through a trusted, secure and compliant platform.