The Bitcoin craze doesn’t seem to end, regardless of how far the prices of the currency falls. The recent rise in the conversation regarding Bitcoin ETF has sparked new interest in some industry stalwarts. One of them is the owner of the New York Stock Exchange, the Intercontinental Exchange (ICE), which will be launching a new platform called Bakkt.
Bakkt will be a federally regulated Bitcoin market that could help in making Bitcoin more widely adopted and also make it a trusted global currency. The new venture is expected to be launched by November.
Bitcoin Going Mainstream?
Bitcoin has always been touted as a currency that could help replace the global financial ecosystem. Even though it is the largest cryptocurrency in the market, it hasn’t been able to take over any economy to date. The goal of Bakkt will be to enhance the role of Bitcoin as a genuine global currency. Technology heavyweights like Microsoft and Boston Consulting Group will be backing the project, as will the retail giant, Starbucks. ICE did not reveal the value of each investment from these partners.
The project’s goal is to help make Bitcoin a more secure and sound medium of conducting financial business, especially for the top financial institutions of the world. Bakkt will also clear the way for big money managers who are looking for a secure way to get into Bitcoin-oriented/enhanced pension funds, mutual funds, ETFs or other kinds of regulated investment tools.
ICE head of digital assets and now CEO of Bakkt, Kelly Loeffler, said:
“Bakkt is designed to serve as a scalable on-ramp for institutional, merchant, and consumer participation in digital assets by promoting greater efficiency, security, and utility. We are collaborating to build an open platform that helps unlock the transformative potential of digital assets across global markets and commerce.”
Creating Trustworthy Investments
In a Fortune interview, Loeffler noted that ICE, along with its partners, had been “building the factory” in secrecy for 14 months. The platform focuses on Bitcoin-backed investment tools, which will essentially be “asset-backed securities,” as in the traditional markets. These investment methods could be very helpful for millennials looking forward to their first 401(k) accounts.
As Wall Street moves toward adoption, the trading volumes could witness a sharp rise. Furthermore, it will help institutional investors clear the way for others by smoothing price volatility.
Helping Bitcoin crack the 401(k) and individual retirement account markets could be one of Bakkt’s most ambitious goals. It even has a Bitcoin credit card in mind, which presents an enormous opportunity with over $25 trillion worth of online shopping worldwide each year resulting in huge fees and other charges on credit cards.