Roughly one month after cryptocurrency derivatives startup Bakkt began user acceptance and testing, the firm announced Friday that it had received approval from the New York State Department of Financial Services (NYDFS) to launch its products.
The approval comes in the form of the NYDFS granting Bakkt’s request for a license to set up a Trust company that would serve as custodian for the two types of Bitcoin Futures contract which the company launched for institutional investors.
The Trust Company referred to as ‘Bakkt Trust Company’ in today’s announcement will now custody Bitcoin used for both the daily and monthly physically settled Bakkt Bitcoin Futures products.
A section of the update published by CEO Kelly Loeffler read,
“With approval by the New York State Department of Financial Services to create Bakkt Trust Company, a qualified custodian, the Bakkt Warehouse will custody bitcoin for physically delivered futures.”
The startup is now looking forward to a possible Sept 23 launch date, which if it happens, will bring an end to the long wait for the Intercontinental Exchange Bakkt company to go live with its platform.
Ultimately, Bakkt is expected to offer customers unprecedented regulatory clarity and security alongside a regulated, globally accessible exchange in a market underserved by institutional-grade infrastructure.
The new platform also hopes to eventually serve as the primary market for determining the benchmark price for Bitcoin, given that it would not rely on allegedly manipulated spot-trading price figures to settle the contracts.
Lastly, Bakkt will as per its mission will offer clients the opportunity to receive contract settlements in actual Bitcoin instead of cash provided by existing crypto derivatives firms like CBOE Global Markets and CME Group.
In June, another startup ErisX reportedly obtained approval from the U.S Commodity and Futures Trading Commission to launch a similar product.