Crypto trade exchange Bakkt recently announced on Twitter that its warehouse will start offering Bitcoin storage to customers beginning September.
According to the tweet, clients will be able to deposit their cash reserves in the Bakkt Warehouse for Bitcoin (BTC) futures that are physically delivered from Sept. 6 onwards.
Launching on Sept. 23
The Bakkt cryptocurrency platform is scheduled to be launched in the US on Sept. 23. The exchange will offer daily and monthly crypto futures and will also allow the physical shipment of BTC with end-to-end controlled markets and custody.
The Bakkt Warehouse was designed and built using the same physical and cyber security safeguards utilized by the New York Stock Exchange. As part of the Bakkt Trust Company, it is also managed by the Intercontinental Exchange, the parent company.
Bakkt’s unique feature of physically deposited futures have been highly anticipated by the cryptocurrency community. The platform’s roll-out was postponed several times because of compliance issues, but it has only served to heighten expectations about the company.
A physically delivered BTC futures agreement is a contract wherein clients are presented with the actual crypto instead of a cash payout after the contract ends. And since the BTC futures are physically established on the Bakkt platform, the Bakkt Warehouse will handle the Bitcoin delivery once the contract lapses.
This is in direct contrast with how futures contracts are handled at the Chicago Board Options Exchange and the Chicago Mercantile Exchange (CME). The two platforms opt for cash-settlements that are based on the BTC price at crypto exchanges.