Bakkt, the open source crypto-exchange created by the same company behind the New York Stock Exchange, says it’s working tirelessly for regulatory approval in preparing for its approaching launch.
“We believe the sooner a regulatory approach to digital assets is determined, the better positioned we are to support healthy markets and innovation within a dynamic global marketplace, ” said Bakkt CEO, Kelly Loeffler in a recent blog post.
In August this year, Bakkt’s parent company Intercontinental Exchange announced that Bakkt intended to use Microsoft’s cloud service Azure to “create an open and regulated, global ecosystem for digital assets.”
Bakkt has also been touting itself as the company that will bring bitcoin mutual funds and ETFs to companies managing 401k retirement investment funds. Attracting such institutional investors is considered a vital next step in ensuring the continued growth of the cryptocurrency market.
Many commentates have reacted positively to the company’s plan to create a “global network to enable you to buy, sell, store and spend digital assets simply, safely and efficiently” in the hope that it will increase cryptocurrency adoption rates. Bakkt also plans to offer bitcoin to fiat conversions, a rare feature on crypto-exchanges and one that will put it ahead of the pack.
To make all this possible, the company says it is working closely with regulators, including the US Commodity Futures Trading Commission (CFTC), in the lead up to its launch, in order to ensure regulatory compliance and clarity for its customers and the wider market.
“Speaking of our launch, we’re hard at work with members and customers preparing for it. Our exchange and clearinghouse boards – and the clearinghouse risk committee – have all reviewed and approved the respective rules,” said Loeffler.
“We plan to file these rules publicly with the CFTC for review and comment very soon. We’re taking a transparent approach to engage across the industry as we begin testing and onboarding in November, and trading and warehousing in December, subject to CFTC approval,” she added.
Regulatory compliance has been a major selling point for the company and it has touted from the outset that its services will be “designed to meet applicable regulatory requirements”.
“In bringing regulated, connected infrastructure together with institutional and consumer applications for digital assets, we aim to build confidence in the asset class on a global scale, consistent with our track record of bringing transparency and trust to previously unregulated markets,” said Loeffler.
“Our patent-pending market model is focused on mitigating risk while creating opportunities for institutions to serve their clients in a regulated framework for digital assets,” she added.
Bakkt also recently announced that Adam White, a former top executive at Coinbase, a major crypto-exchange, will come on board as the company’s CEO in November.
“If you know Adam, you may know he was employee #5 at Coinbase, the largest digital currency platform in the US Equally important as his credentials, he’s also an excellent fit with our culture of collaboration, problem solving, integrity and leadership. As a visionary and a strong operator, Adam is a much anticipated addition to our busy team,” said Loeffler.