Bakkt to Launch Cash-Settled Bitcoin Futures in Singapore

Bakkt Bitcoin Futures intends to switch from its current physically settled futures to cash-settled futures by 2020 in Singapore.

13 November 2019, AtoZMarketsBakkt is a bitcoin futures and digital asset trading platform. That founded in 2018 by the Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange (NYSE). In early 2019, Bakkt declared that it had acquired the Digital Asset Custody Company (DACC) to enhance its crypto-asset custody and storage. At the time, the company was also working closely with BNY Mellon World Bank to develop private key storage solutions

Bakkt Cash-Settled Bitcoin Futures

Bakkt is now planning to offer a cash settlement version of the product due to customer demand. They also intend to provide a cash-settled contract, according to Adam White. He is a Bakkt’s chief operating officer, at the Invest. He said that at NYC Conference on Tuesday.

Bakkt may offer cash-settled bitcoin futures through ICE’s Singapore unit, ICE Clear Singapore. But the product will be accessible worldwide. It would be in talks with the Singapore Monetary Authority, the central bank and the country’s financial regulator, to offer the expected product.

Bakkt, unveiled for the first time in August 2018, has spent more than a year building and launching physical settlement bitcoin futures, in which customers receive the actual bitcoin at the end of a contract instead of the fiat equivalent.

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Bakkt Is Trying To Beat CME Group

Currently, the market giant CME Group is the only provider of bitcoin futures settled in cash. Bakkt is not only trying to beat CME on the cash-settled product, but also the bitcoin option contracts.

In recent weeks, Bakkt has announced plans to offer option contracts in addition to its existing term product, as well as a consumer application to allow customers to purchase bitcoin products from merchants during the next year. On Monday, Bakkt announced that it would extend its custody services to all of its institutional clients, from offering simple services to clients trading futures on ICE.

Speaking widely on Tuesday, White said retail customers had dominated the bitcoin market in recent years. Retail customers can trade their monthly futures, White said. CME is preparing to launch an options product related to its bitcoin futures on Jan. 13, while Bakkt expects to launch its options contracts on Dec. 9.

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