Intercontinental Exchange CEO: Bakkt is talking to major financial institutions to explore the possibility of adopting its Bitcoin derivatives

Key points:

  • Jeffrey Sprecher, chief executive of the Intercontinental Exchange (ICE), said that financial institutions, large and small, are negotiating with Bakkt to explore the possibility of adopting their services.
  • Sprecher said that Bakkt is rapidly entering the options market because of the lack of transparency in the encryption market, and Bakkt can solve this problem by providing reliable price discovery to the field.

According to Theblockcrypto's October 31 report, the CEO of the Intercontinental Exchange (ICE) said on Thursday that Bakkt is negotiating with financial institutions, including major banks and brokers, to explore the possibility of adopting Bitcoin derivatives.

Bitcoin

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In the third-quarter earnings conference call of the stock and futures giants, CEO Jeffrey Sprecher replied that Bakkt, the BIT-based Bitcoin derivatives platform, quickly entered the month after its launch. Problems in the field of bitcoin options and payments.

Sprecher pointed out that Bakkt made these two measures because the current interest in Bitcoin derivatives is very high, and they pay special attention to gaining access to the encryption field in a compliance manner. He said:

“The financial institutions, big and small, are discussing and studying this issue with us, trying to figure out the crux of the problem, how the global regulator will look at it, etc. So we have a lot of dialogue around this issue.”

After the introduction of physical delivery of bitcoin futures, Bakkt initially underperformed, but recently the platform's monthly bitcoin futures trading volume surged, and it reached a trading volume of about $10.25 million on October 25.

Sprecher said that Bakkt is rapidly entering the options market and is expected to be one of the first companies to offer transparent price discovery in the field of encryption. He pointed out that the current bitcoin options market is very active but not transparent. Bakkt's derivatives platform can serve as a source of price discovery independent of the unregulated cash market, bringing more transparency to the field. He said this:

“As a result, Bakkt is well-suited for the option market, so that people can trade options and hedge against a hedging platform on a transparent platform. So this is the driving force behind our rapid launch of options.”

Regarding Bakkt's plan in the field of consumer payments, Sprecher said the move stems from the belief that Bitcoin is both a payment method and a value storage similar to gold. He said:

“We believe that unless there is a real use case, there will be no correlation and growth in the entire field. As you pointed out, we do believe that one of the use cases is to realize value transfer through digital payments.”

Earlier this week, Bakkt announced that it will work with Starbucks to launch a cryptocurrency consumer app and merchant portal in the first half of 2020. Prior to this, the company said it would launch its first regulated bitcoin futures options contract on December 9.