Bakkt Crypto Exchange to Buy Digital Services Provider

The Intercontinental Exchange, or ICE, is planning to acquire the Bridge2 Solutions, a Digital Services Provider, to prepare an app launch from ICE’s subsidiary, Bakkt. Bakkt plans to use the funds from its second round of financing to acquire Bridge2 Solutions to expand its services.

06 February, 2020 | AtoZ Markets – ICE launched its Bakkt regulated digital trading platform in 2019, with physically regulated Bitcoin futures trading. Moreover, Bakkt opened Bitcoin options trading on its platform just a few months later. Continuing its expansion, Bakkt is currently engaged in developing an application for consumers that hosts several options, including digital asset trading and payments.

ICE aims to acquire Bridge2 Solutions, a software as a service (SaaS) platform. After the acquisition, Bakkt also aims to obtain Bridge2, a Digital Services Provider, from ICE, the parent company of Bakkt. Bakkt intends to take advantage of the SaaS platform for its next consumer application.

Bridge2 Solutions as Digital Services Provider

Bridge2, as a Digital Services Provider, helps create digital loyalty programs for companies, such as employee incentives, digital coupons and customer loyalty points. Bakkt expects its consumer app to have a broad spectrum of use cases. Bridge2 Solutions also works with dozens of the world’s largest retail companies, including, Target and BP. Therefore, the impact on crypto adoption could be enormous. Bakkt CEO Mike Blandina said:

“With the launch of the Bakkt app, for the first time, we will offer consumers a solid platform to consolidate. They will use all their digital assets, from crypto to loyalty points to gaming tokens, in one easy-to-use wallet.”

Bakkt also aims for high utility in its new app. App users can use customer rewards, coupons, loyalty points from various companies as cash, consolidated into a single sum in the Bakkt app.

Read More: Blockchain Technology Might Help to Tackle Coronavirus

Digital Assets Will Not Be Transferable Off the Platform

The Bakkt app will host a set of assets, such as loyalty rewards from various companies, as well as crypto assets. The representative of Bakkt said:

“All the assets of the Bakkt app will be transferable to other Bakkt users within the app. But those assets will not be tokenized on a blockchain or transferable outside the Bakkt ecosystem.”

Intercontinental Exchange will carry out the acquisition but will pay for it with Bakkt’s soon-to-close series B funding. The Bakkt funding round is likely to end in the next couple of months.

Besides, the customers served by Bridge2 Solutions are known to be very interested in distributed ledger technology. Although a few major retailers present accept cryptocurrency, practically everyone is well aware of its advantages. Besides, blockchain technology will soon commonly use in areas such as supply chain and logistics. However, there is no doubt that Bakkt’s current offers are only the beginning.

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