The Block Confirms Goldman Sachs Will Not Use Bakkt for Crypto Custody, But May Trade on Platform
Goldman Sachs Says It Will Not Rely on Bakkt for Crypto Custody
It seems that another case of fake news has reached and affected the cryptocurrency market and companies related to it. According to some reports, Godman Sachs was a new victim of unverified information.
The Abacus Journal, a crypto-related site, reported that Goldman Sachs was going to rely on Bakkt, the platform that is being developed by the Intercontinental Exchange (ICE). However, the site informed that the information was not accurate. However, Goldman Sachs could consider trading futures on the Bakkrt platform.
The Intercontinental Exchange has announced the institutional platform Bakkrt back in August. The platform is going to be launched in December, according to CEO Kelly Loeffler. According to The Block, the platform will start to operate on December 12.
Bakkrt will start offering physically delivered Bitcoin futures and will be competing with the Chicago Mercantile Exchange (CME) and the Chicago Board Options Exchange (CBOE). It is important to mention that Goldman Sachs clears bitcoin futures for its clients.
Goldman Sachs invested in the cryptocurrency custody firm known as BitGo. The company was able to raise $70 million dollars in just a few weeks. BitGo provides custody services to more than 75 different cryptocurrencies in the market.
Rana Yared, a managing director of Goldman Sachs, commented:
“Greater institutional participation in the digital asset markets requires secure and regulated custody solutions. We are impressed by BitGo’s product, unique services, and the management team. We view our investment in BitGo as an exciting opportunity to contribute to the evolution of this critical market infrastructure.”
Bakkt is a platform that has been developed taking into account the requirements made by institutions. The market was clearly requesting a platform for institutional investors, but no company was offering something like that.
So as to be compliant with current regulations, the ICE decided to innovate the way in which it built the platform. The Intercontinental Exchange used infrastructure that is currently being used by institutions and adapted it to the crypto reality. This, and a clear legal framework, will help the company increase the trust of institutional investors for cryptocurrencies and the market.