Bakkt Expands Crypto Platform With New Acquisition

Bakkt wants to make Bitcoin trading safe in all of Wall Street. And with the new acquisition, it only confirms the company’s plans to further expand its goal of revolutionizing the way consumers pay for products and/or services.

Acquisition of RCG Assets

On Monday, the cryptocurrency trading firm revealed the acquisition of assets from the century-old futures commissions merchant called the Rosenthal Collins Group (RCG).  The latter, which is an FCM, is all about managing commodities accounts aimed at investors and institutions. The process is done by simply handling trades, moving money, and steering trades via bank-owned clearinghouses – all of these with minimal risk of default.

In December last year, it was confirmed that RCG’s very own consumer accounts franchise would be sold to Marex, which is deemed one of the industry’s largest players. According to Bakkt’s CEO named Kelly Loeffler, when companies tend to merge, overlapping systems are expected to happen. From there, he and his team saw the opportunity to buy a portion of the back office operations.

Loeffler even confirmed that the purchase included compliance and treasury services. In addition, there is the risk management and the inclusion of members from the RCG team. To put it simply, the crypto trading company is buying a substantial part of the RCG’s back office.

Rosenthal is best known for its focus on the international side. Loeffler said that Bakkt aims to take advantage of this expertise but only in an entirely new fashion. By doing so, he believes that it will support the company’s vision in streamlining consumer payments between merchants and customers.

Making BTC Trading Safe

For Loeffler, the acquisition will help Bakkt’s consumer business as the company improves.

The digital currency trading firm was launched in early 2018. Since then, it has been vocal in its goal to develop the first fully-federally regulated exchange specifically built for trading and warehousing BTC. Basically, it aims to make the entire concept of trading so safe for Wall Street that giant banks and/or institutions will be encouraged to create crypto ETFs and mutual fun.

Once the aforementioned is achieved, Bakkt believes that it would satisfy the never-ending demand, which is especially coming from millennials. This is what the company calls the “flywheel effect,” which will help in transforming the world’s leading cryptocurrency – or even other dominant altcoins – into a highly-liquid commercial currency. Hence, any massive gyrations of the price will be totally eliminated.

It should be noted that Bakkt is working alongside Starbucks in order to build the template. It will be first made available for use in apps. From there, consumers will have the ability to pre-fund a prepaid and/or stored value card. The goal is to give people the choice to purchase using either digital or fiat currency.