Still Awaiting Regulatory Approval, Bakkt Makes Its First Acquisition


Intercontinental Exchange’s (ICE) Bitcoin exchange subsidiary, Bakkt, announced on Monday that it has entered into an agreement to acquire select assets of Rosenthal Collins Group, a futures commision merchant.

According to the announcement, the acquisition comes on the back of a December announcement by RCG that revealed the company is selling all of its customer accounts to Marex Spectron. As part of the transaction, Bakkt will purchase select valuable assets related to the development of their trading platform. The transaction is expected to close in February, which will bring members of the RCG team to Bakkt.

Bakkt CEO Kelly Loeffler explained to Fortune that the acquisition enhances the platform’s compliance, risk management and treasury operations.

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.

Other aspects of the transaction will contribute to our regulatory, AML/KYC and customer service operations as we help enable digital asset acceptance by bringing more choice and control to buyers and sellers.

Loeffler points to the latest M&A activity as an indicator that the company is continuing its development efforts, even while stuck waiting for regulatory approval of its first Bitcoin futures product.

This acquisition underlines the fact we’re not standing still as we await regulatory approval by the CFTC for the launch of regulated trading in our crypto markets.Our 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.

ICE previously confirmed that Bakkt will miss its adjusted release date of January 24 and the company expects to provide an updated launch timeline in early 2019.

This news comes several weeks after Bakkt’s recent $182.5 million funding round, which was led by Microsoft’s venture capital arm, Boston Consulting Group and Pantera Capital.

More: Bakkt’s New Acquisition Will Speed Its Plan to Streamline Consumer Payments

Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.

Leave a Reply

Your email address will not be published.

Related Posts