Bakkt to launch Bitcoin futures on cash settlement terms

Bakkt CEO Adam White said the trading platform plans to expand its offerings and add bitcoin futures contracts on a cash settlement basis this year.

“We plan to offer contracts on a cash settlement basis,” said the CEO of a subsidiary of the transcontinental cryptocurrency exchange operator Intercontinental Exchange (ICE).

According to sources familiar with the company’s plans, new monthly cash bitcoin futures on cash terms will be offered through the company’s clearing center in Singapore, ICE Clear Singapore, and trade on ICE Futures Singapore.

However, platform-registered futures traders from around the world will be able to access the product in the same way as they access existing physical delivery futures offered through ICE Clear U.S.

According to White, Bakkt plans to launch the product before the end of the year, but sources familiar with the situation say the company is still in talks with Singapore’s financial regulator (MAS).

The Bakkt platform was first introduced in August 2018, and spent more than a year organizing the launch of bitcoin futures with physical delivery. At the same time, upon expiration of the contract, customers receive bitcoins, and not the equivalent in fiat currency.

Bakkt recently announced the launch of Bitcoin options, as well as cryptocurrency payment apps. In addition, Bakkt opened a custodial service for institutional investors this week with approval from the New York City Department of Financial Services (NYDFS).