Bakkt is one of the stages of a long journey, the end result of which should be almost the full acceptance of Bitcoin in the world. Intercontinental Exchange CEO Jeffrey Sprecher believes this. On July 22, Bakkt will start the first stage of testing bitcoin futures trading.
Why is this so important? This day is considered as a birthday of the new standard in the cryptocurrency industry. Thanks to the efforts of the ICE, both ordinary investors and large players will have access to trading in digital assets with high liquidity. However, the development of a reliable infrastructure will help in solving some of the difficulties that can be encountered on the crypto market.
What Should Keep Developing Of Cryptocurrency?
Then we will see the existing problems of the crypto market and the solution for them from Bakkt.
- Financial Officials Do Not Have a Strong Plan To Regulate Digital Assets
A completely new environment with Bitcoin regulation, custodial services for large customers, trading contracts in regulated markets at the federal level.
- Big Difference In BTC Rate Between Large Trade Areas
Physical delivery contracts whose closing price will be based only on the Bakkt futures market without external influence.
Bakkt is monitored by regulators at the federal level. Any discrepancies in market behavior are the reason for the study of the authorized US federal agencies.
- Monitor Of The Players Is Impossible Practically
Anyone who wants to trade Bitcoin futures will have to go through the KYC procedure and comply with the legal rules on countering money laundering.
- Risks In Cooperation With Contractors
Between the buyer and the seller there will be a clearing house, providing a deal to cover the risks of counterparties. Also, to cover potential collateral deficiencies, $ 35 million was allocated by ICE.
- Lack Of Standarts For Digital Assets
Bakkt representatives assure that the market is controlled at one hundred percent so that no trader can take actions that could harm other bidders.
- Conflicts Of Interests Between Crypto Exchanges And Their Customers Is Possible
ICE Futures is a neutral and transparent trading platform that does not take any risks, and also does not hold a balance in BTC.
- Hacks Of Crypto Trading Platforms
Bakkt will serve as a custodial service for Bitcoin, which is independent of ICE. For Bakkt, they have allocated a completely separate management apparatus, the company is insured for $ 100 million.
- Big Volatility Of Digital Assets
The ICE marketplace will be able to handle millions of user requests per day under any market conditions.
- High Fees Of Trading Transactions
Bakkt promises that futures pricing will be as adequate as possible and will not lead to this problem.