Bakkt Intercontinental Exchange: A Global Platform for Regulated Crypto

Bakkt is a global platform that offers a regulated environment for buying, selling, and storing cryptocurrencies.

The platform was launched in collaboration with Intercontinental Exchange (ICE), a leading global exchange group that operates the New York Stock Exchange (NYSE).

ICE brings a wealth of experience in operating regulated markets, which is essential for Bakkt's mission of creating a secure and transparent platform for cryptocurrency trading.

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Bakkt is a digital asset platform that allows users to buy, sell, and store cryptocurrencies like Bitcoin and other digital assets.

It was launched in 2018 by Intercontinental Exchange (ICE), the same company that owns the New York Stock Exchange (NYSE).

Bakkt's main goal is to provide a secure and regulated platform for institutional investors to trade and hold digital assets.

The platform was initially designed to offer a physically-settled Bitcoin futures contract, which allows investors to buy and sell Bitcoin at a fixed price on a specific date.

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This innovation was a major step forward for the cryptocurrency market, as it provided a more stable and predictable way for investors to engage with Bitcoin.

Bakkt's platform also offers a range of other services, including a custody solution for storing and securing digital assets.

This custody solution is designed to provide an additional layer of security and protection for investors who want to hold digital assets, but may not have the resources or expertise to do so safely.

Bakkt's 1-day futures contract is a game changer for the market. It physically delivers bitcoin, making it a substantial advantage over existing cryptocurrency exchanges like Binance and Coinbase.

This feature makes traders a lot less risky and facilitates better arbitrage trades. It's a big deal because it allows traders to receive a physical bitcoin, rather than just the difference between the contract price and settlement price.

According to Garret See of the investment firm DV Chain, this physical delivery is a major advantage.

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Managing your own crypto assets can be stressful, especially when it comes to large quantities. Many people have been affected by hacks and security flaws.

The Bakkt ecosystem plans to provide an institutional-grade custodial service from the start, which can give users peace of mind. This service will help secure and manage crypto assets.

Working with regulators is also crucial for building trust in the industry. Bakkt will be collaborating with the CFTC and other regulators to ensure compliance with regulations before trade begins.

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The market has been waiting for a solution that addresses its concerns, and it's finally here.

David Mercer, CEO of LMAX Exchange, believes that Bakkt's 1-day futures contract is the game changer the market has been crying for.

This contract physically delivers bitcoin, making it a lot less risky for traders.

Unlike cash-settled futures contracts, physical-settled ones remunerate the trader with a physical bitcoin, not just the difference in price.

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This feature is a substantial advantage over existing cryptocurrency exchanges like Binance and Coinbase, according to Fundstrat's Tom Lee.

Garret See of the investment firm DV Chain agrees that this makes arbitrage trades easier and less risky.

This solution resembles the commodity-backed VanEck/SolidX bitcoin ETF proposal, potentially making the latter redundant.

Bakkt is expanding its reach into the world of diversified crypto businesses through strategic partnerships. Bakkt partnered with Apex Crypto in 2019 to offer a turnkey platform for integrated crypto trading.

This platform is designed for over 30 fintech firms and their customers. It's a game-changer for those looking to transition between trading equities and cryptocurrencies.

Bakkt is also considering offering innovative opportunities like crypto rewards and NFTs. This move will make Bakkt a "crypto provider of choice" for financial institutions and fintechs.

Bakkt's partnership with Apex Fintech Solutions aims to offer Bakkt's crypto solutions to over 220 clients of Apex. This collaboration will further enable frictionless investing for everyone.

The CEO of Apex Fintech Solutions, William Capuzzi, believes that Bakkt's team and platform are a tremendous complement to Apex's purpose.

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