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What is the Bakkt?
Bakkt is a platform and a network of open and uninterrupted global cryptocurrencies designed to allow consumers and institutions to buy, sell, store and spend digital goods. The ecosystem also intends to offer physically established Bitcoin futures futures contracts and Bitcoin deposits. Bakkt is a product of the same company that created the renowned New York Stock Exchange, The Intercontinental Exchange.
The move is expected to have a number of effects on the cryptocurrency sector, some of which will be discussed below.
Influential companies on a single platform
Institutions, traders and consumers will benefit from the cryptocurrencies of the global market, as well as efficiency, security and utility. Bakkt is designed to provide a wide range of services, including derivatives, custody solutions and resource tokenisation systems, with applications for merchants and consumers.
Founder and President and CEO of Intercontinental Exchange, Jeffrey C. Sprecher, said that the development of a connected infrastructure will generate "confidence"In encrypted asset class on a"global scale" in line with the company's track record to bring transparency and confidence to "previously unregulated markets. "
This project can encourage large unencrypted companies to venture into this market. In addition, the platform is supported by influential companies with experience in global financing and commodity markets, making the network infrastructure conducive to institutional investors.
Market response
The Bakkt system is led by ICE, which is in good standing with some of the major financial leaders such as Fidelity Investment, JP Morgan and Charles Schwab. This connection could help facilitate the inflow of more money and investments into cryptocurrency space and help increase markets.
The ICE also operates 23 regulated stock exchanges and plays a pivotal role in the New York Stock Exchange and in 6 payment houses that provide trading for thousands of different assets and derivatives.
The company also connects companies and markets in which they can invest, trade and manage risks. It also provides market data and connectivity in almost all of the market's asset classes. They helped companies raise more capital than any other exchange in the world.
Institutional investment
The platform is clearly oriented towards institutional investments. Bakkt is financially supported by venture capital companies. If these companies are willing to participate in the cryptographic space, this can lead to the entry of even larger companies. It is very likely that this will happen if Bakkt meets all the regulatory rules and guarantees approval for its operations that go on. The opposite is also possible: if large investors approve Bakkt's operations, even small investors can join.
Without significant institutional support, the cryptography market has been sadly volatile. The lack of institutional money due to volatility has prevented them from investing capital that could effectively reduce volatility. It is obvious, therefore, that the involvement of Bakkt in the market can only reduce the anxiety perceived by the naturally conservative investment entities.
Facilitate the use of cryptocurrency
In addition to encouraging the adoption of institutional systems, the platform will allow companies wishing to accept cryptocurrencies and simplify the conversion of digital resources into fiat.
There are many reasons why a company would like to accept cryptocurrencies for its products and services – for example cryptocurrencies would be a much better payment method for companies in countries with high inflation rates or to avoid high commissions on both sides for international payments to avoid fraud and credit card fees for global shipments.
However, an easier exchange between cryptography and fiat, a process with many obstacles such as conversion problems and exorbitant taxes, is necessary because companies simply can not stop using fiat at least for the time being – it's easier to memorize, as it has more stability and a higher adoption rate compared to cryptocurrencies.
Therefore, the system will help every particular company or institutional investor to access both fiat and cryptocurrencies, globally, and without having to worry about risks, volatility and regulatory concerns.
Ability to exchange and truncate anything
Bakkt's ecosystem aims to unite all the advantages of cryptocurrencies and allow companies to access them on a single platform. This is a special feature, as it gives the possibility to tokenise anything from property, art or any other object or service. Any tkenized object can therefore be traded in parts or parts for a single or many investors.
Compared to fiat, criptovalute and blockchain make this process much easier. This ecosystem will also help those who sell tokenized property to spend, receive or store fiat even for tokenization because the conversion process between cryptography and fiat is more fluid. For example, the system could help make data, computer processing power, bandwidth on a decentralized network, etc. important.
Verdict
Bakkt will surely open the door to many investors, big and small, to enter the encrypted market, and perhaps will help stabilize it through an influx of capital.
