U.S. exchange giant Intercontinental Exchange Inc. (ICE), is building a platform on which investors will be able to trade digital assets — and will allow them to buy coffee with their bitcoins.
The firm, which owns and operates the venerable New York Stock Exchange, announced today that it is launching a new company, Bakkt, that will enable retail and institutional investors to trade cryptocurrencies, such as bitcoin, on a regulated market, and warehouse and spend those assets.
To start, the firm is planning to launch a one-day physically delivered bitcoin contract and physical warehousing in November 2018, subject to regulatory approval.
“In bringing regulated, connected infrastructure together with institutional and consumer applications for digital assets, we aim to build confidence in the asset class on a global scale, consistent with our track record of bringing transparency and trust to previously unregulated markets,” said Jeffrey Sprecher, founder, chairman and CEO of ICE, in a release.
Alongside the digital-asset trading capability, the company also intends to create a platform for storing and spending digital assets with major merchants, such as Starbucks.
“As the flagship retailer, Starbucks will play a pivotal role in developing practical, trusted and regulated applications for consumers to convert their digital assets into U.S. dollars for use at Starbucks,” said Maria Smith, vice president, partnerships and payments, at Starbucks, in a release.
Bakkt’s initial group of investors also includes Microsoft’s venture capital arm, M12; an affiliate of Fortress Investment Group; Eagle Seven; Galaxy Digital; Horizons Ventures; Alan Howard; Pantera Capital; Protocol Ventures; and Susquehanna International Group LLP.
“Bakkt is designed to serve as a scalable on-ramp for institutional, merchant and consumer participation in digital assets by promoting greater efficiency, security and utility,” said Kelly Loeffler, CEO of Bakkt. “We are collaborating to build an open platform that helps unlock the transformative potential of digital assets across global markets and commerce.”