Bakkt

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Bakkt
Founded 2018
Key People Kelly Loeffler
Products Digital asset trading, storage and purchases
Website https://www.bakkt.com/index

Bakkt is a subsidiary of the Intercontinental Exchange designed to create an open ecosystem that allows for the buying and selling of Bitcoin, as well as storage and consumer purchases using digital assets. It plans to launch bitcoin futures trading in 2019.[1]

Bakkt, which is partnered with Boston Consulting Group, Susquehanna International Group, Fortress Investment Group, Eagle Seven, Microsoft and Starbucks, will include a regulated market and warehousing service, as well as merchant and consumer applications.[2][3][4][5]

History

Bakkt came from ICE CEO Jeff Sprecher and its CEO Kelly Loeffler, who developed the concept over five years before announcing the venture. ICE invested in Coinbase, a cryptcurrency spot market, with a minority stake in 2015 to learn how the cryptomarkets work. Bakkt, aims to address several parts of the cryptocurrency space with "safe storage for digital currencies and on an institutional scale."[6]

The three pillars of Bakkt, according to Loeffler, are: a consistent regulatory construct, transparent, efficient price discovery, and an institutional quality pre- and post-trade infrastructure.[7]

In December 2018, Bakkt announced it had completed its first round of funding totaling $182.5 million from 12 partner firms including: Boston Consulting Group, CMT Digital, Eagle Seven, Galaxy Digital, Goldfinch Partners, Alan Howard, Horizons Ventures, Intercontinental Exchange, Microsoft’s venture capital arm, M12, Pantera Capital, PayU, the fintech arm of Naspers, and Protocol Ventures.[8]

In January 2019, the firm announced the acquisition of the back office group of Rosenthal Collins Group, a subsidiary of Marex Spectron. Bakkt acquired the back office processing systems, treasury and compliance departments, and will be used to handle payments between customers and merchants on Bakkt.[9]

Products and Services

The Bakkt system is expected to include federally regulated markets and institutional-grade warehousing along with merchant and consumer applications.

Its first use cases will be for trading and conversion of Bitcoin versus fiat currencies including a one-day physically delivered bitcoin futures contract. Bitcoin is today the most liquid digital currency.

Key People

References

  1. Launch Timeline for Bakkt’s Bitcoin Futures to Be Clarified Early 2019: ICE. Cointelegraph.
  2. Intercontinental Exchange Announces Bakkt, a Global Platform and Ecosystem for Digital Assets. ICE.
  3. The NYSE's Owner Wants to Bring Bitcoin to Your 401(k). Are Crypto Credit Cards Next?. Forbes.
  4. Buying Your Starbucks Fix With Bitcoin Is Now Closer to Reality. Bloomberg.
  5. The NYSE's Owner Wants to Bring Bitcoin to Your 401(k). Are Crypto Credit Cards Next?. Fortune.
  6. Custody Battle Brewing Over Crypto Assets, and That’s a Good Thing. John Lothian News.
  7. An evolving market. Kelly Loeffler - Medium.
  8. First capital raise: complete. Kelly Loeffler - Medium.
  9. Bakkt Acquisition Accelerates Plan to Streamline Consumer Payments. Fortune.