BAKKT Holdings, Inc. (NYSE: BKKT) debuted on the New York Stock Exchange two weeks ago via reverse merger.
For those who are unfamiliar with the company, Bakkt is a digital asset marketplace provider that aims to enable consumers to buy, sell, store, and spend cryptocurrencies, though at the moment, only Bitcoin. The company’s retail platform, Bakkt App, also touts one-stop storage and management of crypto and consumer loyalty points, and the ability to convert one type of digital asset for the other.
On October 25, Bakkt announced a partnership with Mastercard, integrating Bakkt’s digital wallet with the payment giant’s global network, unlocking a new potential market of thousands of banks and millions of merchants. Bakkt see’s the new partnership as a pathway towards greater consumer engagement via new and innovative product offerings such as credit and debit cards that provide loyalty programs in crypto. Not one to leave well enough alone, later that same day, Bakkt announced another partnership – this time with Fiserv – to provide similar capabilities.
Cryptocurrency adoption has skyrocketed over the past several years; however, the asset class is still exclusive to investors and users who can stomach the price volatility, or don’t understand the risks associated with it. Allowing consumers to ‘earn’ crypto through credit card rewards – another Bakkt offering in pilot right now – will provide current non-adopters the means to passively accumulate a stake, without putting too much money at risk. As such, Bakkt’s new partnerships will serve to push crypto further up the innovation adoption curve and will undoubtedly result in more staying power for the digital asset class.
