Bakkt’s Warehouse Set to Accept Bitcoin Deposits From Next Week

The passing of each day brings the crypto community closer to the long awaited launch of the Bakkt, and new reports from the firm today reveals that its “warehouse” will be open for bitcoin deposit from customers starting from next week Friday, September 6. 

In preparation for the scheduled launch of its daily and monthly futures contracts, the exchange announced in a tweet today that it would commence offering customers secure storage for Bitcoin, thus making provision for the physical delivery of Bitcoin with end-to-end regulated markets and custody. 

Bakkt first announced plans of its Bitcoin Futures contract platform as far back in August last year. Since then, the exchange had been delayed by a series of hiccups due to regulatory uncertainty.  

The launch was first scheduled for December, and then it was later moved to January 24, 2019. Since the inception of 2019, Bakkt has been waiting for the U.S Commodity and Futures Trading Commission (CFTC) to give necessary clearance for its operation to commence. 

In preparation for its January launch, Bakkt had acquired new assets in January, with CEO Kelly Loeffler stating at the time that some of the assets were gotten from independent futures commission merchant, Rosenthal Collins Group (RCG).

While many crypto enthusiasts have lost hopes of an immediate launch of Bakkt, Loeffler gave the crypto community a relief by announcing that it has gotten regulatory clearance from the New York State Department of Financial Services (NYDFS) and the CFTC to launch on September 23. 

On July 22, Bakkt conducted user acceptance testing (UAT) for prospective users to join the exchange. 

“We expect to use UAT to ensure that customers have time to onboard and can test the trading and custody model we’ve built to their satisfaction,” Loeffler said.

There is a strong possibility the many institutional investors might join Bakkt since its warehouse is insured and provides an institutional guarantee. 

The Intercontinental Exchange (ICE) backed platform stands out from other futures contracts, the reason being that its contracts are physical and not settled with cash.

The physical delivery of Bitcoin implies that the digital assets hosted by the company will be held in the warehouse, to help curb any future regulatory breach, including anti-money laundering, know-your-customer rules, among others.  

NordFX