Top Intercontinental Exchange (ICE) crypto trading platform Bakkt might apply for a New York BitLicense. Reports alleged that the company is considering the move as a way to secure its bitcoin futures.
Bakkt has sensed some opposition from the US’ Commodity Futures Trading Commission (CFTC) with regards to the approval of its bitcoin futures. This is likely due to its intention to custody the assets of its users.
BitLicense for Bakkt?
Under the condition of anonymity, inside sources reported that Bakkt is thinking of securing a BitLicense in a bid to ease the regulator’s worries.
The CFTC acknowledges trust and bank licenses and could permit futures listing if the crypto trading platform can secure a crypto custody license from New York’s Department of Financial Services. While a license could essentially allow the company to keep custody of their client’s crypto assets, Bakkt would still require a CFTC permit for its broader projects.
Contracts Paid out in BTC Instead of USD
The BTC (bitcoin) futures Bakkt is attempting to launch are distinct from that proposed by the Chicago Board Options Exchange and its Mercantile Exchange. In the Bakkt proposal, contracts that expired would be paid out in BTC instead of dollars. This gives a regulated method of procuring the coins. The platform would also make it easier for bitcoins to be used for payments since it will give businesses a simplified way of converting the cryptocurrency to dollars.
Last month, a CFTC commissioner was reported to have acknowledged that the trading commission is working to allow numerous crypt-backed applications, which includes bitcoin futures from Bakkt.