Since the cryptocurrency media spotlight that started during the last quarter of 2017, mainstream adoption of cryptocurrencies has slowly begun. Just recently, reports say that Wall Street seriously considers profit making in the cryptocurrency market.
According to Wall Street reports, the Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange (NYE), is currently planning to establish a trading platform for Bitcoin. If this pushes through, ICE will be one of the major traditional Wall Street companies to embrace the future of Bitcoin and cryptocurrencies in general.
The instruments being talked about are simple swap agreements. This is a huge step because it would settle the swap contracts with actual Bitcoin. This means that during settlement, the trader would get the actual Bitcoin itself, which is different from the futures market on the CME and CBOE where trades are settled for cash.
Currently, the ICE and the NYE have declined to comment on these reports. This project is still under wraps, but if it proves to be true, it could be a huge step towards mainstream adoption for cryptocurrencies.
ICE to Boost Bitcoin
If ICE pushes through on the actual delivery of Bitcoin for trade settlements, it means that the ICE is moving towards the development of a custody solution for institutional investors. As of the moment, institutions are holding off on investing massively on cryptocurrencies because of the problem of holding on to the crypto assets as an institution. If ICE goes on to launch its trading platform, it will serve as the third party custody entity, which would provide institutions more confidence regarding the trades. This means that crypto is set to become an emerging asset class, which could eventually open doors for pensions and endowments.
If ICE manages to become the custodian for Bitcoin trades, it would open the flood gates for massive institutional investments. We will have to wait until the formal announcement by ICE in order to confirm these reports.