Bakkt — a crypto trading exchange is forging ahead with giant partnerships hoping to launch cryptocurrency into the mainstream.
It utilized Microsoft’s Azure cloud to build its platform. Starbucks already adopted the platform for purchases in the chain. Bakkt even just announced that Coinbase’s Adam White will assist with the expansion and branding of the platform.
Bakkt may solve some of the challenges in bringing crypto to big institutions
Often, the strategy for introducing cryptocurrency to the general public these was to start with the average consumer – the smaller bank or business. Once these groups successfully incorporated crytocurrency, the hope was to attract bigger businesses. The strategy Bakkt employs is exactly the opposite of this. They aim to get big corporations and investors on board, and establish trust for for the benefit of everyone else. Additionally, with mega corporations behind and past successes it, the platform has the clout and experience to pull it off.
Loeffler and White have impressive resumes
Loeffler was an executive manager for the Intercontinental Exchange for 16 years, and she helped to propel it into what it is today. Moreover, Adam White helped to grow Coinbase into one of the largest exchanges in America. Their plans to build Bakkt on same model is ambitious, but their vision is clear.
According to Loeffler, “In bringing regulated, connected infrastructure together with institutional and consumer applications for digital assets, we aim to build confidence in the asset class on a global scale, consistent with our track record of bringing transparency and trust to previously unregulated markets,”
Bakkt offers physical assets. and distinguishes itself from recent attempts at crypto-EFTs
Besides standard trading, Bakkt will offer clearing and custody via cryptocurrency, as well as warehousing. Additionally, they will deliver physical, same-day contracts, backed by the USD, GBP, or EUR. For the company, this system is their solution to the ETF problem that cryptocurrency is facing. The Securities Exchange Commission has taken issue with Bitcoin ETF’s lack of physical ownership. Finally, the platform will support Bitcoin (BTC) to fiat conversion, which is uncommon for exchanges.
Therefore, this enormous institutional backing could set Bakkt apart and help establish trust in crypto for mainstream use. Bakkt plans to officially launch in November.
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