Bakkt’s Bitcoin future contract got the green light from U.S Commodity Futures Trading Commission (CFTC) and will be launched on 23 September 2019. Bakkt, first unveiled last August, has been working on regulatory approvals to begin offering the product over the past year. Bakkt will launch custody and physically-delivered daily and monthly bitcoin futures contracts in partnership with ICE Futures U.S. and ICE Clear US.
The announcement was made on the official medium of Kelly Loeffler on 16 August, Friday. In this blog, she said:
Our contracts have already received the green light from the CFTC through the self-certification process and user acceptance testing has begun. With approval by the New York State Department of Financial Services to create Bakkt Trust Company, a qualified custodian, the Bakkt Warehouse will custody bitcoin for physically delivered futures. This offers customers unprecedented regulatory clarity and security alongside a regulated, globally accessible exchange in a market underserved by institutional-grade infrastructure.
She further wrote:
We’re starting with the introduction of a regulated and secure qualified custodian for bitcoin to support our futures contracts. The Bakkt Warehouse, which is part of Bakkt Trust Company, is built using the cyber and physical security protections that support the world’s most actively traded markets, including the NYSE. In addition, the independent governance and compliance requirements of a qualified custodian mean that the Bakkt Warehouse is designed to meet the highest standards of oversight.
Earlier this year, Bakkt began the bitcoin futures testing phase and this has evidently gone smoothly for the company to finally confirm a date for this launch. Bakkt aims to provide transparency and trust to digital assets and its regulated ecosystem is built on a foundation of secure technology to serve institutions and consumers.
Superintendent of the New York State Department of Financial Services (DFS) Linda A. Lacewell said that this approval allows Bakkt to operate as a limited liability trust company. In a press release by the Department of Financial Services (DFS), Superintendent Lacewell said:
As the financial services industry rapidly evolves, DFS will be at the forefront of fostering a sound, regulatory environment that continues to uphold New York as the premier place to do business, while protecting consumers and markets. This approval demonstrates New York’s competitiveness as a hub of innovation and leadership in emerging technologies.
The audience can consult the blog by Kelly Loeffler to gain further insights into this launch.