Bakkt is reportedly aiming to make the Bitcoin trading safe for Wall Street. This has been confirmed by Bakkt’s recent acquisition of a cryptocurrency trading firm. Through the acquisition, Bakkt intends to overhaul the payment methods used by people for buying almost everything from beverage to automobile.
The statement related to the Bakkt’s acquisition of assets previously owned by Rosenthal Collins Group (RCG) was issued by the company on 14th January 2019. RCG is a futures commission’s merchant and manages commodities accounts for financial institutions and investors by transferring money, steering trades, and handling collateral via bank-owned clearing houses with least risk.
Last year in December there reports claimed that the RCG’s consumer accounts franchise will be acquired by Marex, one of the largest players in the industry. Kelly Loeffler the CEO of Bakkt during an interview with Fortune said that the company is essentially buying parts of the back office operations which includes compliance and treasury services, members of the RCG team, as well as risk management. In short, Bakkt was in news to buy some part of Rosenthal’s back office.
The core business of Rosenthal deals with the financial institutions. Commenting on the plans of the company, Loeffler said that the company will deploy its expertise in a completely new way to back up its plans for streamlining payments between merchants and customers. The acquisition is expected to aid the consumer business as the company expands Bakkt, added Loeffler.
Bakkt was launched in 2018 with the aim to develop one of its kinds fully-federally regulated exchange for warehousing and trading Bitcoin. The company is largely supported by NYSE owner Intercontinental Exchange. The company aims to ensure secure trading for Wall Street to enable financial institutions to develop cryptocurrency ETFs and mutual fund to meet the growing demand of millennials. The company is striving to create an infrastructure that will transform Bitcoin or other dominant tokens into highly-liquid commercial currency while eliminating the volatility in the pricing.
Ever since its inception Bakkt has been working on two parallel goals – to transform the traditional payment system placed within retail where merchants are required to pay a very high fee for every dollar that consumers pay at the checkout counter. Secondly as blockchain technology has opened new opportunities for digital assets it allows them to serve as an effective payment ecosystem at the level of the merchant and consumer, said Loeffler during an interview with Fortune.
On being asked as for how the new payment mechanism will operate, Loeffler said that the system will first be used in apps. Bakkt is collaborating with Starbucks to develop a template. The Starbucks app will allow the users to pre-fund a prepared or stored value card. Just like the Starbuck app, the users will first be introduced with an option to pre-fund their respective cards with Bitcoin as the company aims to provide its customers with an option to select between buying with either fiat or digital currency.