The launch of the highly anticipated Bitcoin futures platform Bakkt is facing one more regulatory hurdle.
Bakkt, which is owned by Intercontinental Exchange (ICE), is waiting on the approval of Bakkt Trust Company LLC from the New York Department of Financial Services. The trust will give Bakkt the ability to operate as a qualified custodian and play a crucial role in the company’s plan to physically settle contracts in BTC.
A recent letter from Bakkt details the company’s efforts to gain approval and outlines how the trust will credit customers with the leading cryptocurrency.
“Deliveries under the Bitcoin Contracts will be made through Bakkt Trust Company LLC (the “Warehouse”), which has applied to be licensed as a limited purpose limited liability trust company by the New York State Department of Financial Services. The Bitcoin Contracts require that market participants deposit with the Warehouse the Bitcoin necessary to cover their delivery obligations under short positions in Bitcoin Contracts that go to delivery…