Editor's Note: This article comes fromTalking about Xia Kanshi (ID: huaxiakiss), Author: Hua Xia, published by Odaily with authorization.

The so-called "counterparty risk" refers to the risk caused by one party's non-compliance with the terms of the contract.

For ordinary investors, due to the size of funds and risk exposure, they may not pay much attention to this issue. Because as long as there is a platform, you can buy and sell assets safely and stably.

However, for institutions, this has been one of the roadblocks for them to enter the field of encrypted assets.

For traditional financial institutions, the biggest "counterparty risk" they have to suffer when entering into encrypted asset transactions does not come from other institutions or ordinary investors. Rather, it comes from the trading platform itself.

For example, when a project party came to collect investment before, they said that they were going to issue a token and had contacted the online exchange. He participated in the main investment in this exchange. After the exchange is launched, he can get all the positions, cost distribution, and pending orders of users. The operation team only needs to blast at a fixed point.

If it is as it says, for anyone who is good at trading and judgment, it is impossible to confront the trading platform itself with "God's perspective". When you use the past and present to speculate on the future, he is waiting for you at the result. There is no need to play.

Similarly, not only the trading platform I exemplified, but even if we look at the entire encrypted asset, we cannot find a platform that can make traditional financial institutions let go of their guard against the platform itself to trade.

The establishment of such trust is not only the efforts of the platform itself, but also the natural defects of the entire industry in terms of time span and background endorsement.

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Why is it important to eliminate “counterparty risk” from platforms?

Let’s consider one thing first. As I said in my previous article, if we say that we will have a big bull market in the future, what are the key factors that will drive this bull market?

I think there are a few points like this:

1. Market liquidity is becoming more and more sufficient;

2. The demand for encrypted asset allocation is getting stronger and stronger;

3. The price of encrypted assets is in a low-lying range where funds can be allocated;

4. A safe and compliant channel for the entry of off-site funds.

With regard to market liquidity, it is a certainty that the future will continue to move towards a more relaxed state. Including the United States, developing and developed countries have successively joined the interest rate cut camp.

With the continuous turmoil in the international situation, the friction between China and the United States, and the escalating friction between geographies and regions, the demand for hedging will continue to increase in the future. Then, this will be a continuous benefit to the allocation demand of BTC-based encrypted assets.

Compared with the historical high of 20,000 US dollars, BTC is now fluctuating at the upper limit of 10,000 US dollars. In line with the mining cost and price expectations after BTC production reduction in the future, it is still a low price configurable range.

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This is the core meaning of the launch of Bakkt

There are already many articles on the market that interpret bakkt. I would like to use a few words to describe its possible meaning:

The four points mentioned above to promote the development of the bull market are described in plain language as "the market is rich, and there is a need to allocate encrypted assets, and at the same time, the asset prices in the market are relatively cheap. At this time, as long as there is one that can make funds The passageway that is compliant and safe to enter will become the fuse of the detonation.”

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why?

Highlights of Bakkt: Background Advantage

The biggest background of Bakkt is its parent company, Intercontinental Exchange Group (ICE). ICE owns 14 securities and futures exchanges including the New York Stock Exchange, Euronext, and London International Financial Futures Exchange, as well as 5 clearing houses. In the field of exchanges, both experience and background are top-notch.

In addition, the CEO of Bakkt is the wife of the ICE CEO and also a veteran employee of ICE.

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what comes from the background advantage

With such a background, when we think about the "counterparty risk" that the platform may bring, there may be another consideration: the goal of a platform with such a background is by no means to pass its own platform in a short time Take the advantage to cut leeks and obtain short-term benefits, but become the number one trading platform in the field of encrypted assets in the future.

Because, traditional financial institutions will think that such a background and the composition of investment institutions make their dishonesty and default costs very high. And, not to mention, this platform will be fully regulated, and if something goes wrong, there are currently available legal provisions to pursue responsibility.

Digression: Bakkt implements physical delivery. This is different from the previously launched CBOE and CME.

Summarize:

Summarize:

Bakkt has a natural advantage in eliminating "counterparty risk", and will most likely become a major channel for traditional financial institutions to enter. According to Bakkt CEO, Bakkt will be officially launched on September 23 this year. Once the traditional financial institutions' concerns about the "counterparty risk" of the platform are successfully eliminated, it is possible to bring new large funds into the industry. Give the answer.