The much-awaited exchange Bakkt is to launch in November. Bakkt is a cryptocurrency startup by Intercontinental Exchange that aims to address the various requirements and allow for a better platform for large institutional investments.
Baakt will accomplish this by offering new products through physically delivered Bitcoin futures contracts versus fiat currencies so that it adds to the utility of Bitcoin beyond simple trading.
The level of financial security built on Bakkt will challenge other exchanges, in terms of a market that is much safer to be connected to, with a warehouse where Bitcoins will be mainly maintained offline. The warehouse design involves safeguarding the digital assets through technologies such as biometric scams, sharding and multi-sig. Along with this the purchases and sales of Bitcoin in the futures market will be pre-funded with a separate guaranty fund by Bakkt.
Bakkt offers information in real-time and greater transaction efficiency thanks to it’s regulated physical delivery market price. Thus the capability makes the information and market access far cheaper leading to requirements of large institutions being met.
Large institutional investors are already showing their excitement for the cryptocurrency market. Hedge funds have already surpassed wealthy individual investors as biggest buyers of cryptocurrencies valued at over $100,000.
Bakkt is opening doors for cryptocurrency to larger institutional investors, with additional features in the pipeline. From creating Bitcoin mutual funds, pension funds and an application for people to spend Bitcoin Bakkt is hoping to change the landscape of the traditional financial world to a more crypto centric approach.
Bakkt is the step needed for mainstream adoption of cryptocurrency in the day to day living of people. Bakkt’s reliable method is a traditional way of blending with cryptocurrency in the back for those who don’t trust the cryptocurrency system.
A non-crypto trader or investor does not need to learn crypto slangs and the technicalities such as public and private keys. Instead, they can start crypto trading through their brokerage account thanks to Bakkt’s technology. Intercontinental Exchange boasts of phenomenal figures such as revenues of $4.7 billion in 2017’s Financial Year meaning it surpasses any other cryptocurrency exchange, meaning a boost to overall new crypto investors entering the cryptocurrency world.
Image Source: Curbed
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