Bakkt announces its first ever acquisition on February 8.
Bakkt is a digital assets platform which is operated by Intercontinental Exchange (ICE). It has managed to grab a few headlines in recent times as it aims to build a platform which leads to mainstream adoption of cryptocurrencies.
It further stirred the brew on Friday when it announced on Twitter that the firm is making its first-ever acquisition. Rosenthal Collins Group (RCG), an independent futures commission merchant has agreed to let go of its assets partially.
Although RCG was previously keen to sell its customer accounts and brokerage business to a British firm, Marex Spectron, the deal did not quite materialize. Finally, Bakkt decided to intervene and complete the acquisition.
The acquisition will prove to be instrumental in the development of Bakkt’s risk management and treasury operations, according to Bakkt’s CEO Kelly Loeffler. He further added that the deal will also help ramp up Bakkt’s security features, for instance, anti-money laundering mechanisms and Know Your Customer (KYC) operations to prevent identity theft.
Despite the acquisition being announced on January 14, the deal did take some time to finally culminate into a full-fledged acquisition on February 8.
Bakkt’s Rise to Prominence
Bakkt has been able to attract major investors heavily with the intent and growth plans of its platform. In a recent round of funding, it managed to raise around $183 million. It managed to get firms like Boston Consulting Group, Galaxy Digital, Microsoft’s venture arm M12 and a list of other investors. The funds were to be utilized to help build the exchange’s infrastructure.
Bakkt is a project by the same team which helped build the New York Stock Exchange. It has been created on the Azure platform to ensure that an open and regulated, global system for digital assets see the light of the day.
The Delay in Launch
Bakkt is yet to be launched in the market, as its undeterred access to the market is hindered by the U.S Securities and Exchange Commission. The delay in receiving approvals has led to Bakkt shying away from its previous launch date of January 24, 2019.
The Commodity Futures Trading Commission (CFTC) is the regulatory body which governs such issues. The CFTC is yet to approve the launch of Bakkt. It is also interesting to note that the approval requires the CFTC to start a 30-day comment period. During this period, the general public is allowed to weigh in on the proposal. The regulatory body is yet to initiate such proceedings.
The acquisition comes out as a statement during the times when the launch of the platform was being questioned. Even though the acquisition comes out as a positive, Lauffler is yet to announce a revised date for the launch of Bakkt’s platform.
The recent rounds of funding, the latest acquisition and the pace of development as highlighted by the company show positive signs that the platform, when launched is about to create a major disruption in the cryptocurrency space.