Difference between revisions of "Bakkt"

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Bakkt is a digital assets custody service created by and affilated with [[Intercontinental Exchange]] (ICE).<ref>{{cite web|url=https://medium.com/bakkt-blog/about|name=Blog|org=Bakkt|date=September 10, 2019}}</ref>  
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Bakkt is a [[digital assets]] custody service created by and affilated with [[Intercontinental Exchange]] (ICE).<ref>{{cite web|url=https://medium.com/bakkt-blog/about|name=Blog|org=Bakkt|date=September 10, 2019}}</ref>  
  
 
== Overview ==
 
== Overview ==
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Bakkt said at the time that it would launch unmargined deliverable futures trading in November 2018.<ref>{{cite web|url=https://www.cnbc.com/2018/08/03/starbucks-partners-with-microsoft-ice-on-new-cryptocurrency.html|name=New Starbucks partnership with Microsoft allows customers to pay for Frappuccinos with bitcoin|org=CNBC|date=August 3, 2018}}</ref> In a company blog post dated November 20, 2018, however, the company said that the launch of futures trading was delayed until January 24, 2019, as Bakkt continued to work with the U.S. [[Commodity Futures Trading Commission]] to gain its approval.<ref>{{cite web|url=https://medium.com/bakkt-blog/launch-and-faqs-e1a3f7691d7b|name=Launch update + reader FAQs|org=Bakkt|date=July 25, 2019}}</ref> According to a Wall Street Journal article in March 2019, Bakkt, whose operations were held in abeyance at the time, lacked CFTC approval for its plans to handle customer funds, including those denominated in cryptocurrencies.<ref>{{cite web|url=https://www.wsj.com/articles/bitcoin-futures-launch-hits-regulatory-snag-11553204037?mod=e2tw|name=Bitcoin Futures Launch Hits Regulatory Snag|org=The Wall Street Journal|date=March 22, 2019}}</ref>  
 
Bakkt said at the time that it would launch unmargined deliverable futures trading in November 2018.<ref>{{cite web|url=https://www.cnbc.com/2018/08/03/starbucks-partners-with-microsoft-ice-on-new-cryptocurrency.html|name=New Starbucks partnership with Microsoft allows customers to pay for Frappuccinos with bitcoin|org=CNBC|date=August 3, 2018}}</ref> In a company blog post dated November 20, 2018, however, the company said that the launch of futures trading was delayed until January 24, 2019, as Bakkt continued to work with the U.S. [[Commodity Futures Trading Commission]] to gain its approval.<ref>{{cite web|url=https://medium.com/bakkt-blog/launch-and-faqs-e1a3f7691d7b|name=Launch update + reader FAQs|org=Bakkt|date=July 25, 2019}}</ref> According to a Wall Street Journal article in March 2019, Bakkt, whose operations were held in abeyance at the time, lacked CFTC approval for its plans to handle customer funds, including those denominated in cryptocurrencies.<ref>{{cite web|url=https://www.wsj.com/articles/bitcoin-futures-launch-hits-regulatory-snag-11553204037?mod=e2tw|name=Bitcoin Futures Launch Hits Regulatory Snag|org=The Wall Street Journal|date=March 22, 2019}}</ref>  
  
Bakkt announced that it had received investments of $182.5 million on December 31, 2018. The twelve investors included ICE, Boston Consulting Group, [[Galaxy Digital]], Goldfinch Partners, Alan Howard, Horizons Ventures, Microsoft's venture funding arm and Pantera Capital. Starbucks was not mentioned.<ref>{{cite web|url=https://cointelegraph.com/news/nyse-operators-crypto-platform-bakkt-completes-1825-million-funding-round|name=NYSE Operator’s Crypto Platform Bakkt Completes $182.5 Million Funding Round|org=Cointelegraph|date=March 22, 2019}}</ref> In February 2019, an unidentified individual began sending emails in broken English, trying to attract potential investors for a second round of investments. The emails instructed their recipients to register their names and email addresses at bakktplatform.io, then provide a wallet address and send funds to a bitcoin address provided in a separate email. Representatives from ICE confirmed to Coindesk that this website is fake, and the person sending the emails is not affiliated with ICE or Bakkt.<ref>{{cite web|url=https://www.financemagnates.com/cryptocurrency/news/fraud-alert-fake-bakkt-website-is-seeking-funds/|name=Fraud Alert: Fake Bakkt Website is Seeking Funds|org=Fortune|date=February 25, 2019}}</ref>   
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Bakkt announced that it had received investments of $182.5 million on December 31, 2018. The twelve investors included ICE, Boston Consulting Group, [[Galaxy Digital]], Goldfinch Partners, Alan Howard, Horizons Ventures, Microsoft's venture funding arm and Pantera Capital. Starbucks was not mentioned.<ref>{{cite web|url=https://cointelegraph.com/news/nyse-operators-crypto-platform-bakkt-completes-1825-million-funding-round|name=NYSE Operator’s Crypto Platform Bakkt Completes $182.5 Million Funding Round|org=Cointelegraph|date=March 22, 2019}}</ref> In the following February, leveraging Bakkt's fame an unidentified individual sent emails trying to attract potential investors for a second round of investments in Bakkt in a blatant scam. The emails asked recipients to register names, email addresses and wallet addresses at bakktplatform.io.<ref>{{cite web|url=https://www.financemagnates.com/cryptocurrency/news/fraud-alert-fake-bakkt-website-is-seeking-funds/|name=Fraud Alert: Fake Bakkt Website is Seeking Funds|org=Fortune|date=February 25, 2019}}</ref>   
  
Kelly Loeffler, spouse of ICE CEO Jeffrey Sprecher, is the CEO of Bakkt. In October 2018, Bakkt announced that Adam White, was was the fifth employee hired by [[Coinbase]], would join as COO..<ref>{{cite web|url=https://www.theblockcrypto.com/2018/10/11/coinbases-adam-white-is-joining-bakkt-as-its-coo/|name=Coinbase’s Adam White is joining Bakkt as its COO|org=The Block|date=October 12, 2018}}</ref> In April 2019, Bakkt announced that it had hired PayPal and Google veteran Mike Blandina as Chief Product Officer.<ref>{{cite web|url=https://blocktribune.com/bitcoin-futures-exchange-bakkt-hires-mike-blandina-as-chief-product-officer/|name=Bitcoin Futures Exchange Bakkt Hires Mike Blandina As Chief Product Officer|org=BlockTribune|date=September 13, 2019, 2019}}</ref> In June 2019, Bakkt  brought on Chris Petersen, a former payments product strategist from Google, to help the firm launch its mobile app-based wallet, dubbed Bakkt Pay.<ref>{{cite web|url=https://www.theblockcrypto.com/2019/06/20/bakkt-brings-on-google-ux-expert-as-it-builds-its-consumer-app-for-spending-cryptocurrency/|name=Bakkt brings on Google payments expert as it builds its consumer app for spending cryptocurrency|org=Bakkt|date=June 27, 2019}}</ref>  
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Kelly Loeffler, spouse of ICE CEO Jeffrey Sprecher, is the CEO of Bakkt. In October 2018, Bakkt announced that Adam White, was the fifth employee hired by [[Coinbase]], would join as COO.<ref>{{cite web|url=https://www.theblockcrypto.com/2018/10/11/coinbases-adam-white-is-joining-bakkt-as-its-coo/|name=Coinbase’s Adam White is joining Bakkt as its COO|org=The Block|date=October 12, 2018}}</ref> In April 2019, Bakkt announced that it had hired PayPal and Google veteran Mike Blandina as Chief Product Officer.<ref>{{cite web|url=https://blocktribune.com/bitcoin-futures-exchange-bakkt-hires-mike-blandina-as-chief-product-officer/|name=Bitcoin Futures Exchange Bakkt Hires Mike Blandina As Chief Product Officer|org=BlockTribune|date=September 13, 2019, 2019}}</ref> In June 2019, Bakkt  brought on Chris Petersen, a former payments product strategist from Google, to help the firm launch its mobile app-based wallet, dubbed Bakkt Pay.<ref>{{cite web|url=https://www.theblockcrypto.com/2019/06/20/bakkt-brings-on-google-ux-expert-as-it-builds-its-consumer-app-for-spending-cryptocurrency/|name=Bakkt brings on Google payments expert as it builds its consumer app for spending cryptocurrency|org=Bakkt|date=June 27, 2019}}</ref>  
  
Bakkt announced its five-member board of directors on March 29, 2019. The members include Akshay Naheta, managing partner at Softbank, Sean Collins, managing partner at Goldfinch Partners, Kelly Loeffler, Jeff Sprecher, and Tom Noonan, member of the ICE board of directors who will also serve as chairman of the Bakkt board.<ref>{{cite web|url=https://www.coindesk.com/bakkt-taps-former-ibm-and-cisco-exec-tom-noonan-to-chair-its-board|name=Bakkt Taps Former IBM and Cisco Exec Tom Noonan to Chair Its Board|org=CoinDesk|date=March 29, 2019}}</ref>  
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Bakkt announced its five-member board of directors on March 29, 2019. The members include Akshay Naheta, managing partner at Softbank, Sean Collins, managing partner at Goldfinch Partners, Kelly Loeffler, Jeff Sprecher, and Tom Noonan, member of the ICE board of directors who will also serve as chairman of the Bakkt board.<ref>{{cite web|url=https://www.coindesk.com/bakkt-taps-former-ibm-and-cisco-exec-tom-noonan-to-chair-its-board|name=Bakkt Taps Former IBM and Cisco Exec Tom Noonan to Chair Its Board|org=CoinDesk|date=March 29, 2019}}</ref>
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On September 23, 2019, Bakkt finally launched.<ref>{{cite web|url=https://www.coindesk.com/bakkt-is-finally-launching-its-bitcoin-futures-today-heres-what-to-expect|name=Bakkt Is Finally Launching Its Bitcoin Futures Today. Here’s What to Expect|org=CoinDesk|date=September 19, 2019}}</ref><ref>{{cite web|url=https://www.wsj.com/articles/nyse-owner-to-launch-long-awaited-bitcoin-futures-11569153649|name=NYSE Owner Launches Long-Awaited Bitcoin Futures|org=The Wall Street Journal|date=September 23, 2019}}</ref> As of 11 AM EST, Bakkt had sold 38 bitcoin futures contracts. By this time, the price of bitcoin had fallen 2.4 percent since the beginning of the day.<ref>{{cite web|url=https://www.bloomberg.com/news/articles/2019-09-22/bitcoin-is-growing-up-as-deliverable-futures-start-trading|name=Bitcoin Falls as Futures Exchange Makes Its Trading Debut|org=Bloomberg|date=September 23, 2019}}</ref>
  
 
== Services ==
 
== Services ==
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=== "Bakkt Futures" ===
 
=== "Bakkt Futures" ===
  
On August 16, 2019, Loeffler announced on Bakkt's blog that ICE's physically-delivered bitcoin futures, commonly referred to as "Bakkt futures,"  would launch trading on September 23, 2019.<ref>{{cite web|url=https://medium.com/bakkt-blog/cleared-to-launch-8dfc3e6f9ed0|name=Cleared to Launch|org=Bakkt Blog|date=August 16, 2019}}</ref> Bakkt Warehouse execates the final deliveries on ICE US Futures exchange's daily and monthly bitcoin futures. Priced in U.S. dollars, each futures contract is for one bitcoin. After the end of trading in a futures contract, ICE Clear US, which clears the futures contracts, matches buyers and sellers with open positions and provides delivery instructions to Bakkt. The market participants who are the beneficial owners of those positions must have accounts at Bakkt in order to receive or pay bitcoin.<ref>{{cite web|url=https://www.cftc.gov/sites/default/files/filings/ptc/19/05/ptc051319iceusdcm001.pdf|Name=Product Certification|org=Commodity Futures Trading Commission|date=September 13, 2019}}</ref>
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On August 16, 2019, Loeffler announced on Bakkt's blog that ICE's physically-delivered bitcoin futures, commonly referred to as "Bakkt futures,"  would launch trading on September 23, 2019.<ref>{{cite web|url=https://medium.com/bakkt-blog/cleared-to-launch-8dfc3e6f9ed0|name=Cleared to Launch|org=Bakkt Blog|date=August 16, 2019}}</ref> Bakkt Warehouse executes the final deliveries on ICE US Futures exchange's daily and monthly bitcoin futures. Priced in U.S. dollars, each futures contract is for one bitcoin. After the end of trading in a futures contract, ICE Clear US, which clears the futures contracts, matches buyers and sellers with open positions and provides delivery instructions to Bakkt. The market participants who are the beneficial owners of those positions must have accounts at Bakkt in order to receive or pay bitcoin.<ref>{{cite web|url=https://www.cftc.gov/sites/default/files/filings/ptc/19/05/ptc051319iceusdcm001.pdf|name=Product Certification|org=Commodity Futures Trading Commission|date=September 13, 2019}}</ref>
  
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Bakkt's bitcoin futures initially saw very low trading volume. In its first week of trading, only 623 bitcoin futures contracts - each of which represents a single bitcoin - were traded, amounting to just $5 million worth of the asset. That includes its daily bitcoin futures contract, of which only 5 were traded. To contrast this, the CME Group's bitcoin futures traded 4099 contracts - each of which are worth 5 bitcoins - on September 27 alone. Dave Weisberger, CEO of CoinRoutes, said that it was too early to totally write off Bakkt, because it takes time for traders to migrate between platforms. He also said, "these things tend to develop slowly."<ref>{{cite web|url=https://www.coindesk.com/trading-volume-for-bakkts-bitcoin-futures-totaled-just-5-million-in-first-week|name=Trading Volume for Bakkt’s Bitcoin Futures Hit Just $5 Million in First Week|org=Coindesk|date=October 2, 2019}}</ref>
  
 
== Key People ==
 
== Key People ==

Latest revision as of 12:42, 2 October 2019

WedbushFutures-200px.gif


Bakkt
Bakkt.jpg
Founded 2018
Headquarters Atlanta, Georgia
Key People Kelly Loeffler, CEO; Adam White, COO; Mike Blandina, Chief Product Officer
Employees 10 - 50
Products Cryptocurrency custody
Twitter @Bakkt
LinkedIn Profile
Facebook bakktapp
Website Bakkt Home
Blog Bakkt Blog

Bakkt is a digital assets custody service created by and affilated with Intercontinental Exchange (ICE).[1]

Overview

Bakkt's formation was announced by ICE on August 3, 2018. The company named Microsoft and Starbucks as partners.[2]

Bakkt said at the time that it would launch unmargined deliverable futures trading in November 2018.[3] In a company blog post dated November 20, 2018, however, the company said that the launch of futures trading was delayed until January 24, 2019, as Bakkt continued to work with the U.S. Commodity Futures Trading Commission to gain its approval.[4] According to a Wall Street Journal article in March 2019, Bakkt, whose operations were held in abeyance at the time, lacked CFTC approval for its plans to handle customer funds, including those denominated in cryptocurrencies.[5]

Bakkt announced that it had received investments of $182.5 million on December 31, 2018. The twelve investors included ICE, Boston Consulting Group, Galaxy Digital, Goldfinch Partners, Alan Howard, Horizons Ventures, Microsoft's venture funding arm and Pantera Capital. Starbucks was not mentioned.[6] In the following February, leveraging Bakkt's fame an unidentified individual sent emails trying to attract potential investors for a second round of investments in Bakkt in a blatant scam. The emails asked recipients to register names, email addresses and wallet addresses at bakktplatform.io.[7]

Kelly Loeffler, spouse of ICE CEO Jeffrey Sprecher, is the CEO of Bakkt. In October 2018, Bakkt announced that Adam White, was the fifth employee hired by Coinbase, would join as COO.[8] In April 2019, Bakkt announced that it had hired PayPal and Google veteran Mike Blandina as Chief Product Officer.[9] In June 2019, Bakkt brought on Chris Petersen, a former payments product strategist from Google, to help the firm launch its mobile app-based wallet, dubbed Bakkt Pay.[10]

Bakkt announced its five-member board of directors on March 29, 2019. The members include Akshay Naheta, managing partner at Softbank, Sean Collins, managing partner at Goldfinch Partners, Kelly Loeffler, Jeff Sprecher, and Tom Noonan, member of the ICE board of directors who will also serve as chairman of the Bakkt board.[11]

On September 23, 2019, Bakkt finally launched.[12][13] As of 11 AM EST, Bakkt had sold 38 bitcoin futures contracts. By this time, the price of bitcoin had fallen 2.4 percent since the beginning of the day.[14]

Services

Custody

Bakkt established Bakkt Trust Company which received a charter from the New York State Department of Financial Services (NYDFS) on August 16, 2019. The NYDFS "has authorized Bakkt to provide custody services for bitcoin in conjunction with the launch of physically delivered bitcoin futures contracts. Bakkt will serve institutional customers; its bitcoin futures contracts will be listed for trading on Intercontinental Exchange (ICE) Futures US and cleared through ICE Clear US."[15] Bakkt refers to this service as Bakkt Warehouse.

According to a September 9, 2019 Tweet from Bakkt, "Bitcoin deposited at our Warehouse is protected by a $125 million insurance policy."[16]

"Bakkt Futures"

On August 16, 2019, Loeffler announced on Bakkt's blog that ICE's physically-delivered bitcoin futures, commonly referred to as "Bakkt futures," would launch trading on September 23, 2019.[17] Bakkt Warehouse executes the final deliveries on ICE US Futures exchange's daily and monthly bitcoin futures. Priced in U.S. dollars, each futures contract is for one bitcoin. After the end of trading in a futures contract, ICE Clear US, which clears the futures contracts, matches buyers and sellers with open positions and provides delivery instructions to Bakkt. The market participants who are the beneficial owners of those positions must have accounts at Bakkt in order to receive or pay bitcoin.[18]

Bakkt's bitcoin futures initially saw very low trading volume. In its first week of trading, only 623 bitcoin futures contracts - each of which represents a single bitcoin - were traded, amounting to just $5 million worth of the asset. That includes its daily bitcoin futures contract, of which only 5 were traded. To contrast this, the CME Group's bitcoin futures traded 4099 contracts - each of which are worth 5 bitcoins - on September 27 alone. Dave Weisberger, CEO of CoinRoutes, said that it was too early to totally write off Bakkt, because it takes time for traders to migrate between platforms. He also said, "these things tend to develop slowly."[19]

Key People

References