Bakkt, the cryptocurrency trading platform founded by the Intercontinental Exchange (ICE), owner of the New York Stock Exchange (NYSE), has announced its first acquisition. The move is geared is geared toward expanding the platform’s compliance capabilities.
‘We’re Not Standing Still’ – Bakkt CEO
Bakkt revealed today that the company has gone through its first acquisition. According to the official blog post, Bakkt entered into an agreement to acquire assets of the Rosenthal Collins Group (RCG) – a seasoned futures commission merchant.
It’s worth noting that Bakkt was initially announced in August 2018, with an expected launch date in November 2018, pending approval by the Commodity and Futures Trading Commission (CFTC). Unfortunately, the platform is still waiting for said approval for the launch of its regulated trading on the crypto markets.
However, one of the important things that the recent acquisition highlights, according to Bakkt’s CEO, Kelly Loeffler, is that the team isn’t standing still.
This acquisition underlines the fact we’re not standing still as we await regulatory approval by the CFTC for the launch of regulated trading in our crypto markets. Our mission requires significant investment in technology to establish an innovative platform, as well as financial market expertise to deliver the most trusted fintech ecosystem for digital assets. – Said Loeffler.
Just a couple of weeks ago, Bakkt disclosed that it has completed its very first funding round of $182.5 million. The round saw major companies take part such as CMT Digital, M12 – Microsoft’s venture capital arm, Pantera Capital, Naspers, Galaxy Digital, and others.
Enhanced Risk Management and Compliance of Bakkt
According to Loeffler, the acquisition is going to further the platform’s risk management, as well as treasury operations. Compliance is another important aspect which will see notable contribution:
How does this advance our work? First, it will enhance our risk management and treasury operations with systems and expertise. Other aspects of the transaction will contribute to our regulatory, AML/KYC and customer service operations as we help enable digital asset acceptance by bringing more choice and control to buyers and sellers.
The reason for which Bakkt has managed to pin attention to it, besides the fact that it’s owned by ICE, is that it intends to enable the trading of government-backed physically delivered bitcoin futures.
In other words, when the trader engages in a 1-day Bitcoin futures contract on Bakkt – they are settled the very next day in Bitcoin. The difference is that at the expiration date the user will receive the underlying asset, rather than fiat. Additionally, Bakkt will offer fully regulated warehousing. That’s what the CFTC approval is for.
What do you think of Bakkt? Do you think it will drive institutional investors in the field? Do share your thoughts in the comments below!