[2018-08-09] Bitcoin and the NYSE — unpacking Bakkt’s BIG plans

[moriskarlov]

Bitcoin is no stranger to the endorsement of industry giants, attracting the support of Twitter founder Jack Dorsey, Paypal co-founder Peter Thiel, and former hedge fund manager Mike Novogratz. But the most resounding endorsement yet comes from a slightly more obscure financial titan—Jeff Specher, the Chairman of Intercontinental Exchange (ICE) which owns the New York Stock Exchange (NYSE) and many other exchanges internationally.

Bakkt—a play on the word ‘backed’ from the phrase ‘asset-backed securities’—is Specher’s latest venture, and aims to achieve nothing short of making bitcoin a trusted global currency by creating a federally-regulated crypto ecosystem.

This vision is supported by Microsoft, who will lend its cloud expertise; Starbucks, which will help pioneer mobile payment, and the Boston Consulting Group, who will assist ICE in forming the new company—an all-in-one bitcoin exchange for trading, custody and delivery, that will use  ICE’s existing trading infrastructure to cater to retail investors, institutional investors and consumers.

With the full force of these industry leaders behind them, the launch is planned for November,  after fourteen months of behind the scenes preparation by founder Specher and his wife Kelly Loeffler, who is Bakkt CEO.

A regulated onramp for investors

By providing an approved custody solution combined with a regulated exchange, Bakkt propose to make settlement, storage and delivery of bitcoin as simple as it is for stocks. This could mean that as soon as November, fund managers will be able to buy and hold bitcoin for their clients.

For retail investors, this will significantly broaden the scope of bitcoin investment choices—allowing baby boomers to put bitcoin in their 401k with insurance against hacks or failures, and paving the way towards a range of different bitcoin-backed ETFs or mutual funds.

For institutional investors, Bakkt plans to provide a fully regulated onramp, which will combine a major CFTC-regulated exchange with CFTC-regulated clearing and custody. Although this is still pending approval from the commission and other regulatory bodies.

“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,” said Kelly Loeffler, CEO of Bakkt. “We are collaborating to build an open platform that helps unlock the transformative potential of digital assets across global markets and commerce.”

See more - https://bravenewcoin.com/news/bitcoin-and-the-nyse-unpacking-bakkts-big-plans/

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[Betwrong]

I don't think that the objection made by Abhishek Punia, namely that the project will be an attack on the very principles bitcoin, is appropriate in this case. No doubt that Bakkt is doing for Bitcoin a great thing, which significance can be compared with the ETF implementation, regarding future Bitcoin adoption. There's no need in adding negativity to this overall great news for the Bitcoin community.

[f12345]

People are so overly focused on ETFBitcoin could be on the verge of breaking through as a mainstream currency. At least that’s the goal of a startup that is soon to be launched by one of the most powerful players on Wall Street, with backing from some of America’s leading companies.

This morning Intercontinental Exchange—the trading colossus that owns the New York Stock Exchange and other global marketplaces—announced that it is forming a new company called Bakkt. The new venture, which is expected to launch in November, will offer a federally regulated market for Bitcoin. With the creation of Bakkt, ICE aims to transform Bitcoin into a trusted global currency with broad usage.

To achieve that vision, ICE is partnering with heavyweights from the worlds of technology, consulting, and retail: Microsoft, Boston Consulting Group, and Starbucks. ICE did not immediately disclose the total investment of the investment partners, a group which also includes Fortress Investment Group, Eagle Seven, and Susquehanna International Group—or the ownership stakes.

The founding imperative for Bakkt will be to make Bitcoin a sound and secure offering for key constituents that now mostly shun it—the world’s big financial institutions. The goal is to clear the way for major money managers to offer Bitcoin mutual funds, pension funds, and ETFs, as highly regulated, mainstream investments. news, this is the real news..

[cryptofonia]

I see that a belief that integrating Bitcoin to classical exchanges will help crypto market to get a momentum feels not right.

[Kprawn]

It is no wonder the SEC dropped the Winkelvoss twins application into the trash can, there are bigger players in the industry

and they will get "priority" treatment.    It is going to be a long wait for people until November.    I have a lot of mixed

emotions about this news... On the one hand, I want Bitcoin to go to the Moon, but on the other hand, I hate the fact that

fiat masters will come into the Bitcoin scene and all the damage that they will bring with them. 

[cryptofonia]

It is no wonder the SEC dropped the Winkelvoss twins application into the trash can, there are bigger players in the industry

and they will get "priority" treatment.    It is going to be a long wait for people until November.    I have a lot of mixed

emotions about this news... On the one hand, I want Bitcoin to go to the Moon, but on the other hand, I hate the fact that

fiat masters will come into the Bitcoin scene and all the damage that they will bring with them. 

It just highlights that Winklevoss didn't hire an appropriate lobbyist (GR-manager) for to reach its goal.