Bakkt’s is expanding risk management, compliance and treasury operations.
Bakkt’s mission is to build the first integrated, institutional grade exchange-traded markets and custody solution for physical delivery of digital assets. In parallel to building a secure, scalable platform for transacting with digital assets so that the regulated ecosystem serves consumers, merchants and institutions.
To advance that effort, Bakkt has entered into an agreement to acquire certain assets of Rosenthal Collins Group (RCG), an independent futures commission merchant with nearly 100 years of earning clients’ trust.
In December, RCG announced the sale of all its customer accounts to Marex Spectron, one of the world’s largest commodity brokers. As part of that transaction, Bakkt’s aim was to purchase certain valuable assets related to developing the platform. The transaction is expected to be closed in February.
“Typically when companies are combined you have overlapping systems, so we saw an opportunity to a purchase a portion of the back office operations, including compliance and treasury services, and risk management, as well as adding members of the RCG team.” Bakkt is essentially buying part of Rosenthal’s back office.Kelly Loeffler, CEO
How does this advance Bakkt’s vision ?
First, it will enhance the risk management and treasury operations with systems and expertise. Other aspects of the transaction will contribute to the regulatory, AML/KYC and customer service operations as the platform enables digital asset acceptance by bringing more choice and control to buyers and sellers.
This acquisition underlines the fact Bakkt is not standing still as they await regulatory approval by the CFTC for the launch of regulated trading in the crypto markets.
Bakkt’s mission requires significant investment in technology to establish an innovative platform, as well as financial market expertise to deliver the most trusted fintech ecosystem for digital assets.
Bakkt’s vision is to bring digital assets into the mainstream by enabling efficient transactions between consumers and merchants.
Distributed ledger technology (DLT) has the potential to contribute to a lean, modern transaction platform that is compatible with existing merchant infrastructure. While DLT and cryptocurrencies are early in their development, Bakkt is committed to expanding the use of this technology to promote choice by building a fair, efficient platform for digital assets globally.
Bakkt launch to be delayed again
The company last set Jan. 24 as the launch date. However, ICE has yet to receive the necessary approvals from the U.S. Commodity Futures Trading Commission (CFTC), and at the pace the agency has been moving, it is unlikely that approvals will be secured in time to hit that target.
This would be the second postponement. ICE had originally aimed to launch Bakkt in December, but last month it said that the “volume of interest” in the company and the “work required to get all the pieces in place”necessitated a delay.
Unlike the bitcoin futures offered by CME Group and Cboe, Bakkt’s will be physically settled, meaning actual bitcoin will change hands rather than cash when the contracts expire.