Crypto continues to climb
New York Stock Exchange operator International Exchange announced that it is establishing a company called Bakkt which will manage people’s cryptocurrencies.
Bakkt will operate under Microsoft’s cloud technology and will allow users to trade cryptocurrencies and also convert them to dollars and other forms of currency. In fact, stores like Starbucks have even announced that they will accept crypto through Bakkt.
Founder Howard Schultz explains, “I don’t believe that bitcoin is going to be a currency today or in the future. I believe that we are heading into a new age, in which blockchain technology is going to provide a significant level of a digital currency that is going to have a consumer application.”
Cryptocurrencies have been plagued by volatility and a lack of security, which has taken away some of their legitimacy. However, Bakkt is a major step for crypto, as the NYSE is a very well established and respected financial exchange.
The introduction of Bakkt may also introduce more crypto regulation. Crypto has been awaiting regulation for a while now, especially with the multiple hacks that have wiped out large portions of certain exchange’s databases. With a major exchange taking the helm, the SEC might be quicker to establish rules around cryptocurrencies and exchanges.
UBS highlights the lack of readiness of crypto, reporting, “Our findings suggest that bitcoin, in its current form, is too unstable and limited to become a viable means of payment for global transactions or a mainstream asset class.”
If Bakkt gains popularity and traffic, then it could turn this around. Crypto may or may not be the way of the future, but the NYSE wants to figure that out for itself.