Bakkt Reveals 'First Steps' in Solving the Problem of Cryptocurrency Regulation

Intercontinental Exchange, which also owns the New York Stock Exchange, is striving to change all that with the launch of its company Bakkt.

Which aims to create the first federally regulated cryptocurrency marketplace.

With the stated goal of connecting the blockchain to existing merchants, Bakkt is one of the first cryptocurrency marketplaces to meet federal regulatory requirements.

Bakkt August 20, 2018.Bakkt uses Microsoft's cloud system to facilitate its network and is working with companies like Starbucks and BCG to create a network of vendors that customers can feel safe using cryptocurrencies with, according to the official press release.

In a Medium blog post, Bakkt CEO Kelly Loeffler detailed the company's first steps.

Toward creating this secure network, as well as what makes Bakkt different from other companies in the blockchain ecosystem.

"All aspects of the existing futures market, including institutional-grade onboarding and compliance will, for the first time, be part of physical delivery and warehousing of Bitcoin. This includes consistent standards for compliance, with anti-money laundering and know-your-customer rules, market surveillance, and reporting standards at the federal regulation level, subject to final review and approval by the U.S. CFTC.".

Bakkt will reportedly incorporate multiple layers of physical and technological security into its Bitcoin warehouses-including the storage of Bitcoin in offline digital warehouses.

Sales of Bitcoin futures through Bakkt will be pre-funded to reduce the possibility of default.

"While there are many aspects of Bakkt that we'll continue to develop and share, our initial focus is supporting regulated institutions in serving customers in this emerging asset class."