Cryptocurrencies move forward in the economy
The Bakkt company cryptocurrency project will be appointing the CEO of Coinbase which is the fifth executive, in November while working on getting regulations right and approved. This has also led the CEO Kelly Loeffler to think the cryptocurrency market is about to revolutionize the world of finance, similar to the energy market back in the early 2000’s. The Former executive at the US-based Coinbase, Adam White has left the US crypto exchange in order to join the Bakkt company.
Through an official announcement made on the Medium by the Bakkt CEO, Kelly Loeffler, she stated that:
“I’m thrilled to announce that we will welcome Adam White as chief Operating Officier in November.”
Bakkt is hard at work with regulators in order to clarify what is needed in this growing market, the regulators further stated that :
“We’re taking a transparent approach to engage across the industry as we begin testing and onboarding in November, and trading and warehousing in December, subject to CFTC approval.”
These ideas involve any pre-funding for Bitcoin trades because clearing members will not be able to handle the cryptocurrencies themselves. This will be fully funded in bitcoins by the Bakkt together with the ICE.
Loeffler concluded in the post by stating that:
“We believe the sooner a regulatory approach to digital assets is determined, the better positioned we are to support healthy markets and innovation within a dynamic global marketplace.”
According to the exchanges spokesperson at Coinbase:
“We wish Adam all the best and are proud of what we call the ‘Coinbase Mafia’ – an increasingly impressive group of alumni who are driving the crypto space forward.”
Crypto industry excited for the Bakkt’s project
The Bakkt platform has been one of the most anticipated projects within the crypto community, the platform is seen as a venture to bring Bitcoin to mutual funds, ETFs and even 401 Ks. The company has confirmed that it will deliver physical bitcoin contracts in the future.
Most people think that the entrance of Bakkt in the cryptocurrency industry is a sign that the financial markets are also on the Bitcoin and digital assets movement. This can also be an opportunity for Wall Street in order to provide trading on a federally regulated exchange with custody services and clearing systems.
The Fifth employee of Coinbase had an interview with Fortune where it was mentioned :
“I had a front-row seat for the last couple of years watching the money managers’ and other big investors’ evolving views of cryptocurrencies.”
There is a lack of infrastructure on the existing platform that pushed in to join the Bakkt company:
“In 2017, I saw a big shift. The interest in Bitcoin and other currencies started changing from retail to the institutional side. But the level of infrastructure of the existing trading sites often didn’t meet their expectations. That’s why they’re waiting on the sidelines. That is why I joined Bakkt.”
Institutions are more interested now than ever in the recent market trends that have shown false impressions of waning interest in the cryptocurrency space. The industry must be focused on fundamentals like technology process and trading volumes in cryptocurrencies instead of price and market size in order to determine the progress of digital currencies.
In a statement, Loeffler said that:
“The digital market is fragmented like the energy market once was in the early 2000s. ICE was the pioneer attracting more and more institutions to trade energy, which is what created today’s liquid market. We’re about to see a revolution on the same scale in cryptocurrencies.”
The Bakkt company is focused on getting giants like Wall Street to trade crypto with the same ease, safety and scale as bonds or the stock market, as this will lead to a huge leap forward in crypto evolution.
What are your opinions on these developments in the crypto industry? Please feel free to leave a comment down below.