Bakkt Explained | A New York Stock Exchange Bitcoin Futures Company

blockchain landscape is evolving with each passing day. With companies working around the clock, we are witnessing new changes.

Meet Bakkt, a NYSE bitcoin futures platform that aims to change how bitcoin is seen and explored by the general population. It is developed by the New York Stock Exchange(NYSE). Their primary motive is to make bitcoin reach more audience. Also, their exchange will enable institutional investors to buy digital assets for the very first time.

Bakkt is a global cryptocurrency platform that will enable institutional investors to dive deep into digital assets space. They can sell, buy or store digital assets including the most popular digital currency bitcoin. They are also in the plans to make one-day bitcoin futures a possibility.

How they will achieve their goal?

To achieve the desired result, they will be focusing on making digital currencies more trustable, liquid and accessible. To do so, they are going to use the trusted institutional approach rather than going through a more decentralized approach.

Even though blockchain and bitcoin are decentralized, having a centralized approach can help the general population to trust the digital currencies more. This in return will help build trust.

They are making it happen by developing a trade infrastructure that will work at an institutional level and ensure that price discovery is efficient.

They are also solving the ETFs problem. SEC is very stringent when it comes to rejecting ETFs proposal as they do not meet particular regulations. ETFs generally lack the trust that is required for the market to perform seamlessly. Also, market and future derivatives tend to be volatile due to lack of price stability.

Their team also compromises of talent people. Adam White, the Coinbase core member, is also joining Bakkt. He built the GDAX exchange, and his experience can shape Bakkt exchange as a COO.

The role of Microsoft and Starbucks

Bakkt is trying to change the whole market. And, this is not possible without the help of big guns. That’s why we see two major companies coming out and partnering with Bakkt: Microsoft and Starbucks.

According to reports, Starbucks will be in charge of improving customers interest in the digital currency. They will do it by enabling their services to accept bitcoin and other digital currency. Also, Starbucks implementation will be more regulated which will give consumers the confidence to spend their currency.

So, what will Microsoft do? Microsoft will handle the backend infrastructure of Bakkt providing them the Azure cloud services. This will help Bakkt not only to operate efficiently but also make merchants adopt the bitcoin payments. Microsoft aims to handle all the backend operations including invoice handling, security, scalability, eCommerce, and so on.

The role of both Starbucks and Microsoft is important in making Bakk a reality.

Bakkt has also partnered with other big investment companies including Galaxy Digital, Pantera Capital and Horizons Ventures.

Conclusion

Bakkt approach to providing physical bitcoin futures can make bitcoin reach more audience. It will also help shape how we store, buy or sell digital currencies. So, what do you think about Bakkt? Will it grow to new heights and make bitcoin more accessible to everyone? Comment below and let us know.

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