Cryptocurrency trading platform Bakkt has made an exciting announcement for its clients and customers around the world. From September 6th, people will be able to deposit their funds in the company’s Warehouse for physically delivered Bitcoin futures.
Bakkt Warehouse is the qualified custodian of the famous platforms. The announcement came via Twitter in the middle of the week. The storage of customers’ BTC assets will start in early September and will represent a viable course of action for investor all over the planet.
Daily and Monthly Crypto Futures in America
Actually, the opportunity to store BTC assets will be available several weeks before Bakkt launches its platform for daily and monthly crypto futures in the United States of America; this is scheduled for September 23rd. It will allow for physical delivery of BTC with end-to-end regulated markets and custody.
Using its official Twitter account, @Bakkt, the platform explains pretty much all the details about the new offering for those parties interested in it. “On Sept 6, our Warehouse will begin offering secure storage of customer bitcoin to prepare for the launch of Bakkt Bitcoin Daily & Monthly Futures when they launch on Sept 23,” the tweet read.
“These contracts will enable physical delivery of bitcoin with end-to-end regulated markets and custody,” was the final part of the message. This way, Bakkt continues to position itself as one of the preferred platforms for these types of agreements and contracts.
Bakkt Warehouse is an important segment of the Bakkt Trust Company, which was created under the same standards and parameters of the New York Stock Exchange (also managed by Intercontinental Exchange, the parent company of Bakkt), when it comes to cyber and physical security.
The crypto industry has been expecting Bakkt’s physically delivered futures for quite some time now, as the firm has had to experience several unexpected delays in the launch of the platform, mainly because of compliance problems.
Physically Delivered Bitcoin Futures Contracts, Explained
For reference, a physically delivered Bitcoin futures contract is a type of agreement in which clients receive the actual crypto asset and not a payment in the form of cash in the moment that the pact expires.
These Bitcoin futures contract are physically settled on the Bakkt platform, which means that the receiving entity will get a BTC delivery from Bakkt Warehouse once the agreement expires. Meanwhile, other platforms that offer futures contracts, such as the Chicago Mercantile Exchange (CME) and the Chicago Board Options Exchange are settled in cash, and the indicator to do it is usually BTC’s price at major crypto exchanges.
Bakkt is a crypto payment system and futures trading platform created by Intercontinental Exchange on November 2018.
Reports recently came out that informed that the CME’s Bitcoin futures achieved a new lifetime record, with an average daily volume of $515 million in the month of May 2019, further expressing just how promising Bitcoin futures are within the industry.
By Andres Chavez