Bakkt is taking what it hopes can be one other important step towards acquiring regulatory approval as its mother or father firm – Intercontinental Alternate (ICE), acquires Bitcoin custody platform. ICE additionally plans to register the corporate as a licensed belief in New York State.
ICE Acquires Bitcoin Custody Platform
Bakkt introduced the information in a Medium submit by firm Chief Working Officer (COO) Adam White. In line with the announcement, ICE has accomplished the acquisition of Digital Asset Custody Firm (DACC).
The transfer is the most recent step by Bakkt to smoothen the method of acquiring approval from the U.S. Commodity Futures Buying and selling Fee (CFTC). Up to now, the launch of the corporate’s physically-backed Bitcoin futures contract has confronted a number of delays and postponements.
Aside from buying DACC, ICE additionally plans to registered Bakkt as a licensed belief within the state of New York. Reviews point out this plan is borne out of the CFTC’s objection to Bakkt’s unique plan of “warehousing” bodily BTC.
Examine @Bakkt’s custody answer and why we have filed to turn out to be a NY belief, plus our acquisition of DACC and the way we’re working carefully with @BNYMellon https://t.co/ecqMXWCoXe
— Adam White (@WhiteAdamL) April 29, 2019
If accredited, Bakkt working as belief would be capable of perform as a licensed Bitcoin custodian. With the DACC staff being built-in into Bakkt, White believes the corporate may even develop its product line sooner or later.
In line with Fortune, the ICE-subsidiary plans to retain the DACC CEO in addition to all the opposite workers. There’s, nonetheless, no phrase but on how a lot ICE paid to amass the New Jersey-based cryptocurrency custody platform.
If accredited, Bakkt will turn out to be the most recent entrant into the increasing subject of cryptocurrency custodians. Already, corporations like Coinbase and Circle provide custody instruments for digital currencies and Constancy has its personal devoted digital asset custody service.
Bakkt Eager on Addressing CFTC Fears
For Bakkt CEO, Kelly Loeffler, these newest steps don’t point out a change within the firm’s method. As a substitute, Loeffler opines that they’re in step with its unique imaginative and prescient plus the necessity to rapidly receive regulatory inexperienced mild.
Commenting on the matter to Fortune, Loeffler stated:
There isn’t any pivot. From the bottom up what ICE has been constructing for 2 years is the most secure model of a custody answer for digital belongings.
As beforehand reported by Bitcoinist, Bakkt acquired some belongings belonging to Rosenthal Collins Group (RCG) again in January 2019. The corporate additionally raised greater than $180 million from big-name traders like Microsoft, in addition to a major fairness cope with Starbucks.
Will the acquisition of DACC assist get Bakkt over the CFTC approval line? Tell us your ideas within the feedback beneath.
Photos through Twitter @WhiteAdamL, Shutterstock
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