Bakkt Will Not Save Cryptocurrency (And You Wouldn’t Want it to)
This is the second in a series of articles sharing my thoughts about the entry of traditional finance into cryptocurrency markets. Originally posted on March 22, 2019 at MarkHelfman.com.
Did you hear about Bakkt?
It’s a massive, regulated, global cryptocurrency exchange built on the Microsoft Azure platform and managed by the same company that runs the New York Stock Exchange. When it opens, everybody who uses Bakkt will have a full suite of enterprise-grade investment services as well as the tools large investors need to properly manage funds. Most importantly, Bakkt will assume all the regulatory and operational risk of buying and selling cryptocurrency, including custody, security, insurance, and clearing for all transactions. Bakkt plans to open in 2019.
Why is this a big deal? Don’t we already have cryptocurrency exchanges?
It’s a big deal because no other exchanges have Bakkt’s backing, expertise, trading infrastructure, and professional network. Its parent company, Intercontinental Exchange, owns some of the largest and most successful stock and commodity marketplaces in the world. People involved with Bakkt have decades of experience in traditional finance. Bakkt’s backers include Horizon Ventures, M12, PayU, Pantera Capital, and Boston Consulting…
