Valliance Bank taps Bakkt to connect customers to cryptocurrencies
Valliance Bank’s customers could soon be buying, selling and holding bitcoin and Ethereum through a partnership with ICE-backed crypto startup, Bakkt Holdings (NYSE:BKKT).
Bakkt’s platform will allow the community bank to plug a crypto buy/sell/hold module into its mobile banking app, providing quick and easy access to customers interested in trading and investing in crypto assets.
Through the partnership, Valliance joins a growing roster of US banks that are participating in Bakkt’s crypto connect solution. The regulated product is anticipated to launch in Q2 2022, and the participation is conditioned on the successful integration with the bank’s core processor.
Established in Oklahoma City in 2004, Valliance Bank, with $580 million in total assets, operates five branches between Oklahoma and Texas in addition to its virtual bank V.BANK.
“We’re excited to partner with Valliance Bank and to bring crypto experiences fit for the needs of their clients. Crypto has reached the masses but many are still on the sidelines unsure how to get started and looking for a convenient entry point from a relationship they already trust,” said Sheela Zemlin, Chief Revenue Officer at Bakkt.
Bakkt bills itself as a “digital assets marketplace”
“Our core banking platform provider recommended Bakkt. By partnering with Bakkt, we’re opening the door to a new, dynamic opportunity to provide modern and compliant financial solutions to our clients who have a growing interest in cryptocurrency,” said Alicia Wade, President and COO of Valliance Bank. “More and more of our clients each week are signaling they’re ready to get started with crypto. We’re excited to partner with Bakkt as we innovate and broaden our offering beyond the traditional deposit accounts. Bakkt crypto connect is an easy-to-get-started solution which plugs right into our existing mobile banking app, allowing our clients to buy, sell and hold crypto in one seamless experience.”
Bakkt, which completed its reverse merger with a special purpose acquisition company in October, bills itself as a “digital assets marketplace.” The company aims to grow its network from around 100,000 users now to more than 32 million users in five years. To achieve this ambitious goal, it has formed partnerships to tap into more than $1.6 trillion worth of digital assets across cryptocurrencies, gaming assets, gift cards, rewards/loyalty points, and more.
The list of its partners includes big names such as Alphabet, Mastercard and others. However, smaller businesses leverage the Bakkt platform to expand payment offerings, create new revenue streams and increase customer loyalty. Although its valuation remains under $1 billion, Bakkt expects its custody, futures and options businesses to generate more than $100 million in 2022 revenue.
