One of the biggest financial institutions on Wall Street has created a new startup company which aims to bring Bitcoin to Starbucks and also introduce a new cryptocurrency futures contract. Intercontinental Exchange (ICE) is the owner of NYSE and some of the largest futures markets said that it’s launching a startup company called Bakkt in partnership with tech giant Microsoft.
The startup company’s job is to create a regulated and global ecosystem for digital assets. Bloomberg reports that the new company wants to introduce a one-day futures contract that differs from derivatives already offered by US competitors such as CME Group Inc. and Cboe Global Markets Inc. because it’s delivered physically. Owners of the contract will get Bitcoin upon expiration, not cash.
The futures contract will need to first be approved by the Commodity Futures Trading Commission (CFTC) in order to get into action. The CFTC is the regulatory agency responsible for futures and options market. Bakkt will likely enter the retail sector as it also plans to expand to Starbucks locations to allow customers to spend Bitcoin on their favorite beverages and teas.
This will get BTC to become a real presence in real-life locations with tons of exposure, which will forge mainstream adoption of cryptocurrency in general whether or not it’s Bitcoin.
The implement aims to establish the coin as currency just like money and show off the power of cryptocurrency and how far it’s come. Bakkt is planning to target the millennial audience that’s currently the main shareholder of cryptocurrencies in general. Bitcoin will become available to new investors through the exposure gained from the huge number of branches. It’ll likely attract investors of all demographics who eat and drink at Starbucks. There’s currently no word on when they’ll begin taking the coin as payment as of now.
VP, Partnerships and Payments for Starbucks, Maria Smith says that “Starbucks will play a pivotal role in developing practical, trusted and regulated applications for consumers to convert their digital assets into US dollars for use at Starbucks” and As a leader in Mobile Pay to our more than 15 million Starbucks Rewards members, Starbucks is committed to innovation for expanding payment options for our customers.”
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