When the trading colossus Intercontinental Exchange (ICE) burst into the Bitcoin scene with Bakkt, the excitement in the cryptosphere was palpable. It was a sure sign that Bitcoin was on its way to premier currency status.
Bakkt backed by huge American businesses was ICE’s answer to a Bitcoin market with federal regulation. The excitement, however, went to a lull of sorts when regulatory delays began. The Commodity Futures Trading Commission, for instance, opposed Bakkt’s plan to ‘warehouse’ physical BTC.
Bakkt as a Trust
ICE is back in the news once more after announcing their plan to acquire the Digital Asset Custody Company and register Bakkt as a trust as well. Consequently, if Bakkt is granted its custodian status as a trust, most legal obstacles stymieing its progress as a holder of crypto assets as future contracts will be eliminated. The organization will be cleared to settle BTC futures in BTC rather than fiat.
DACC, ICE’s new acquisition holds the “Enclave Wallet“; proprietary technology that powers its operations which include the Enclave Time Lock, Air-Gapped Hot Wallet and the Enclave Cold Storage. Bakkt’s COO Adam White says that these efforts are in a bid to enforce “ironclad infrastructure and a security-first mindset…fundamental to storing digital assets.”
DACC and Bakkt Together For Progress
On their acquisition of DACC, White wrote in his blog article announcement that “DACC shares our security-first mindset and brings extensive experience offering secure, scalable custody solutions to institutional clients.”
DACC already supports 100 plus assets and 13 block chains and therefore has the accelerator potential that Bakkt requires. To quell fears that Bakkt is changing lanes its CEO Kelly Loffler, said that the firm is just “clarifying its role” in crypto trading. Bakkt, the two leaders insists has never really been about the creation of exchange but has been about using technology to safeguard the assets of their customers.
Bakkt has not disclosed how much it parted with for DACC, but Adam White did state that they would maintain all of the outfit’s employees. Bakkt’s new structure should now allow for a regulated end to end crypto price discovery environment. The firm will also store, clear and trade BTC as a regulated custodian.
This will help investors to enjoy the robust, high-performance clearing base running globally recognized liquid futures trading venues. Bakkt’s primary focus is to unlock increased institutional investor participation and establish better and fairer markets for the digital asset class.
ICE, however, has to endure a few more months of waiting as the New York regulators discuss and approve its application. Earlier on in the year, the company enlarged its crypto data feature to provide feeds with enhanced transparency. Their platform now has available trading data on at least 400 crypto and fiat pairs established in 30 marketplaces. At its infancy, the data feed only showcased 15 venues of exchange, but now it showcases 60 cryptocurrencies, beaming much needed real-time data over its high-speed network to a good number of trading firms and hedge funds.