Bakkt CEO: Physical Delivery, No Margin Trading

Bakkt CEO: Physical Delivery, No Margin Trading

Earlier this month, the Intercontinental Exchange — the operator of 23 global leading exchanges including the New York Stock Exchange — announced Bakkt, a regulated ecosystem for digital assets. Kelly Loeffler, CEO of Bakkt, shares details about the upcoming platform.

The announcement of Bakkt has been exciting news for all of the crypto community and has been talked about since. To address spreading rumors and provide clarification, Loeffler explains the core operational principles of the forthcoming exchange in her official Medium post on August 20.

The CEO outlines the three essential aspects of the project:

  • a consistent regulatory construct;
  • transparent, efficient price discovery; and
  • an institutional quality pre- and post-trade infrastructure.

Loeffler emphasizes that their daily bitcoin contracts will be delivered physically, which plays a critical role in price formation. She then goes on to say:

Specifically, with our solution, the buying and selling of Bitcoin is fully collateralized or pre-funded. As such, our new daily Bitcoin contract will not be traded on margin, use leverage, or serve to create a paper claim on a real asset.

Kelly Loeffler, CEO of Bakkt

The CEO underscores that adopting these policies will promote market integrity and differentiate the platform’s strategy from existing bitcoin futures contracts, which support margin trading, leverage and are settled in cash.

Learn more about what the introduction of Bakkt might mean for the crypto space in our article.


8,744 USD -6.81%
Volume, 24h
3,497,717,274 USD
153,922,072,217 USD

Related news

Bitcoin Price Again Defends $10K as U.S.-China Trade War Escalates

Bitcoin’s price flipped green on Sunday, as the largest cryptocurrency continued to defend critical support amid escalating trade-war tensions between the United States and China. BTC/USD Update […] The post Bitcoin Price Again Defends $10K as U.S.-China Trade War Escalates appeared first on Hacked: Hacking Finance.

Bitcoin baby

Some commentators have dismissed bitcoin technology as a joke compared to blockchain, but actually bitcoin technology is proving more resilient as a de-centralized, truly novel approach to financial services. Most blockchain implementations in the financial service industry deliver cost efficiencies, but are permission-based, which makes them similar to all other centralized technology. However, by using Bitcoin as a base layer technology, new digital cash systems, can be built without the risks of regulation or shutdown … delivering true independence.

Hot news

By continuing to browse, you agree to the use of cookies. Read Privacy Policy to know more or withdraw your consent.