Bakkt broadens international presence and enhances custody services
“As our crypto business matures and we grow both internationally and domestically, we expect that our revenue mix will also evolve, with an increasing share of our revenue coming from subscription-based annual recurring revenue, helping to provide stability during uncertain crypto markets.”
Bakkt Holdings, Inc. has announced a significant expansion of its international footprint and custody client base.
The company is set to enhance its crypto capabilities across various global markets by the end of the year, marking a notable leap in its operational scope.
Bakkt expanding crypto custody across LATAM, Europe, and Asia
Latin America: Bakkt has deepened its collaboration with Hapi, a prominent stock trading platform, to extend their crypto trading services in Latin America. They have already made headway in Mexico and Argentina and anticipate launching in Brazil by the end of 2023.
Europe: The partnership between Bakkt and Hapi is also set to bear fruit in Spain, with a launch expected by year-end. Additionally, Bakkt plans to offer crypto trading and custody services in the UK and EU through its association with crypto app 3.0verse.
Asia: The company’s Asian expansion includes partnerships with 3.0verse, targeting key markets like Hong Kong and Singapore.
Chief executive Gavin Michael emphasizes the strategic importance of these expansions, focusing on regions with regulatory clarity and substantial market potential. Bakkt’s commitment to regulatory compliance is seen as a significant advantage in its global expansion efforts.
“We are working efficiently to expand into international regions with more regulatory clarity and sizeable addressable markets. We are excited to be collaborating with clients eager to pursue these opportunities together. Bakkt’s history of regulatory compliance has well-positioned us to expand globally, and we will continue to seek out expansion opportunities with additional clients in current and new markets”, said Michael.
“Our secure and trusted platform continues to benefit from the flight to quality occurring in the industry,” Michael added. “While we are disappointed with the recent volatility in our share price, we continue to focus on the durability of our business and our revenue streams over the long term. As our crypto business matures and we grow both internationally and domestically, we expect that our revenue mix will also evolve, with an increasing share of our revenue coming from subscription-based annual recurring revenue, helping to provide stability during uncertain crypto markets.”
Bakkt acquired Apex Crypto, shutdown retail crypto exchange, delisted 25 tokens
Domestically, Bakkt is not just expanding but also strengthening its position by partnering with institutionally-backed clients. A notable collaboration is with EDX Markets, a digital asset marketplace. Bakkt is set to join EDX’s clearing house and custodial network, initially serving as a backup qualified custodian. This move underlines Bakkt’s robust platform, seen as a reliable choice amidst the industry’s “flight to quality.”
The ICE-owned digital asset specialist also decided to end support for 25 of its 36 tokens. Bakkt has not provided a reason for the delisting, but it is possible that the company is seeking to focus on a smaller number of more popular tokens. It also can be attributed to recent regulations and changes in the crypto industry.
Bakkt’s decision to delist several altcoins comes after the completion of its acquisition of Apex Crypto back in April. In an earlier press release, Bakkt stated that the acquisition aligns with its strategic focus on the business-to-business (B2B) market for crypto services.
As part of this focus, Bakkt shut down its own retail cryptocurrency exchange in February. This shift reflects a growing realization that the retail crypto market may not offer the same level of opportunities as it once did. By refocusing on the B2B space, Bakkt aims to capitalize on the growing demand for crypto services among institutional and professional clients.
Bakkt acquired Apex Crypto for a maximum purchase price of $200 million. The acquisition terms include a cash payment of $55 million, along with an additional offering of up to $145 million worth of Bakkt’s own stock, contingent on Apex Crypto meeting certain targets.
Despite recent fluctuations in its share price, Bakkt remains focused on the long-term durability of its business and revenue streams. The company anticipates a shift in its revenue mix, moving towards a greater share of subscription-based annual recurring revenue. This strategy aims to provide stability during uncertain times in the crypto markets.