US Intercontinental Exchange to Launch Bitcoin Futures Product

In the latest news, there are the plans of the US Intercontinental Exchange to launch Bitcoin Futures product in November. The company also eyes the establishment of a digital assets platform.

6 August, AtoZ Markets – The owner of the New York Stock Exchange (NYSE), the Intercontinental Exchange (ICE) has made a public announcement. The company has stated that it plans to establish a digital assets platform and launch a Bitcoin futures product. 

US Intercontinental Exchange to Launch Bitcoin Futures Product

The platform will be entitled Bakkt, while it will leverage Microsoft’s cloud to build “an open and regulated, global ecosystem for digital assets.” The official press release also notes that the platform will enable consumers and institutions to trade, store and spend digital assets over a worldwide network. 

Noteworthy, the ICE also looks into offering a one-day “physical” Bitcoin futures contract. This implies that Bitcoin would be delivered on a specified date. This is compared to other offerings that are settled with cash. The product is anticipated to launch in November, as it now awaits the decision from the US Commodity Futures Trading Commission (CFTC).

The company has also stated that it believes that regulated platforms will form new standards for handling “the specific security and settlement requirements” of cryptocurrencies. ICE has stated that some of the major companies, such as BCG, Microsoft, and Starbucks are now supporting the company with risk management and consumer experience practices for this initiative. 

In addition, according to ICE, Starbucks will work to develop “practical, trusted and regulated” applications for consumers to convert digital assets into the USD for use at the firm’s outlets. 

What is the aim of the project?

The founder and chairman of ICE, Jeffrey Sprecher, said in the release:

“In bringing regulated, connected infrastructure together with institutional and consumer applications for digital assets, we aim to build confidence in the asset class on a global scale, consistent with our track record of bringing transparency and trust to previously unregulated markets.”

The CEO of Bakkt Kelly Loeffler has added:

“Bakkt is designed to serve as a scalable on-ramp for institutional, merchant and consumer participation in digital assets by promoting greater efficiency, security, and utility.”

The press release also mentions that M12, Microsoft’s VC arm, Galaxy Digital, Horizons Ventures, Alan Howard and Pantera Capital are present among the first that are also part of the project.

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