Intercontinental Exchange (ICE), the parent of the New York Stock Exchange (NYSE) announced the launch if a new global crypto platform ‘Bakkt‘ in collaboration with tech giant Microsoft. The Bakkt digital asset platform will be focused towards making it easy for users to either use and spend their cryptocurrency holdings while also allowing them to trade when required.

The concept is to provide a seamless global network to cryptocurrency enthusiasts which will operate under the purview of federal regulations, using the Microsoft cloud-based services. On Tuesday, August 20, Bakkt CEO Kelly Loeffler gave some further insights into the operations and services of the Bakkt platform in a Medium post.

In this latest post, Kelly majorly clarifies about the services with respect to the physically-settled Bitcoin Futures contracts, a service that ICE has announced to offer to the users of the Bakkt platform. Kelly describes the Bakt platform as “a proven framework that underpins exchanges” that includes three basic characteristics like:

Kelly in the blog-post also talks about the crucial rule of physical delivery of digital assets in the trusted price formation which sets the basis for advancing with the promise of cryptocurrencies. Kelly says”

“Specifically, with our solution, the buying and selling of Bitcoin is fully collateralized or pre-funded. As such, our new daily Bitcoin contract will not be traded on margin, use leverage, or serve to create a paper claim on a real asset.”

While further explaining how it will help in high consumers participation in the cryptomarket, Kelly says:

“This supports market integrity and differentiates our effort from existing futures and crypto exchanges which allow for margin, leverage and cash settlement. Coupled with a secure, regulated warehouse solution, you can begin to see how this market infrastructure can help more institutions and consumers participate in the asset class.”

Premier consulting giant like the Boston Consultancy Group (BCG) and retail giants like Starbucks have also extended their support for the use of Bakkt platform. However, the excitement of this news about Starbucks being a part of the Bakkt ecosystem had caused many to believe that the American coffee-making giant would be accepting cryptocurrency payments on its outlet.

However, the company spokesperson later clarified that Starbucks will not be directly accepting payments in digital currencies but will instead help its customers to convert their crypto holdings into U.S. Dollars that can be used to make payments.

Many experts believe that the launch of the Bakkt platform will encourage more institutional players to participate in the crypto market while increasing the probability of the arrival of Bitcoin investment products like the Bitcoin ETF.

However, the announcement of the Bakkt platform earlier this month has played a little role to keep the euphoria going as later, the crypto market has gone through a heavy sell-off with the price of Bitcoin and many other altcoins dropping by 10-25% and the overall market valuations hitting the rock-bottom below $200 billion.

The post Bakkt CEO Explains Services Of The Crypto Platform, Says Won’t Support Margin Trading appeared first on CoinSpeaker.

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