Summary
Intercontinental Exchange (ICE) announced on August 3, 2018, its strategic initiative to form a new company named Bakkt. This venture aims to establish a global platform for digital assets, with an initial focus on Bitcoin. Bakkt plans to integrate regulated markets, secure warehousing, and user-friendly applications for consumers and institutions to transact, store, and spend digital assets. The platform's development is a significant step for ICE into the burgeoning digital asset space, seeking to provide institutional-grade infrastructure and regulatory compliance.
Key Highlights
- 1ICE is launching a new company, Bakkt, to create a global platform for digital assets.
- 2Bakkt will initially focus on Bitcoin, with plans for a 1-day physically delivered Bitcoin futures contract.
- 3The platform will offer regulated markets and physical warehousing for digital assets.
- 4Key partners in this venture include BCG, Microsoft, and Starbucks.
- 5The initiative aims to enable consumers and institutions to buy, sell, store, and spend digital assets seamlessly.
- 6ICE's U.S.-based futures exchange and clearing house will be instrumental in launching the Bitcoin contract, subject to CFTC approval.
- 7A separate guarantee fund, funded by Bakkt, will be established by the clearing house.
Frequently Asked Questions
Bakkt is a new company being formed by Intercontinental Exchange (ICE) with the goal of establishing a global platform for digital assets. Its primary objective is to create an integrated, regulated, and secure ecosystem for consumers and institutions to buy, sell, store, and spend digital assets, initially focusing on Bitcoin.
Initially, Bakkt plans to launch a 1-day physically delivered Bitcoin futures contract, along with physical warehousing for Bitcoin. These offerings are expected to be made through ICE's regulated U.S.-based futures exchange and clearing house, pending CFTC review and approval.
Bakkt is collaborating with several prominent companies, including BCG, Microsoft, and Starbucks, to build out its integrated platform and merchant/consumer applications.
As stated in the filing's Safe Harbor statement, this venture involves forward-looking statements and is subject to risks and uncertainties. These include regulatory approvals (specifically from the CFTC), market acceptance, the evolving nature of digital assets, and other risks detailed in ICE's SEC filings, such as its Annual Report on Form 10-K for the year ended December 31, 2017.