NYSE's Plans For 'Physical Delivery' Of Bitcoin Pave Way For Major Crypto Adoption, Analysts Say

Analysts Dominic Chu and Robert Kelly weighed in on recent reports that the New York Stock Exchange plans to offer Bitcoin swap contracts, on CNBC Tuesday, May 8.

Both Chu and Kelly argued that the fact that these contracts would be settled with the delivery of BTC itself is an important factor in Bitcoin's mainstream adoption.

Both commentators were unanimous in considering that the plans of NYSE's parent company Intercontinental Exchange - news of which comes from "Multiple reports citing sources familiar," if true, could be of momentous consequence for the future of crypto.

Whereas the futures contracts currently being offered on CME and CBOE are ultimately settled in fiat, Kelly emphasized that ICE's suggestion that crypto swap contracts will be settled in BTC is a significant milestone that could herald major Wall Street crypto adoption.

"[The] physical delivery of Bitcoinmeans that ICE has a custody solution.

That's the big deal, they have come up with a custody solution for institutional holders.

Cold storage custodian solutions are currently offered by small operators, and ICE has not confirmed whether it plans to build an in-house cold storage solution or to outsource it.

ICE has so far declined to comment on the reports at all.

Kelly said that if ICE can offer a custodian solution that is SEC-qualified and fits with the SEC's compliance requirements, this would "Open the floodgates" to institutional capital, resulting in some "Big price moves" in the crypto markets.

ICE's plans come just days after investment banking giant Goldman Sachs announced it will be opening a crypto trading desk "Within weeks," as well as recently hiring a cryptocurrency trader as vice president of their digital asset markets.