Bakkt Raises $182.5 Million in Bid to Drive Institutional Adoption

Bakkt Raises $182.5 Million in Bid to Drive Institutional Adoption

On New Year’s Eve, the CEO of Bakkt Kelly Loeffler announced that the company had received $182.5 million in its first round of fundraising from key investors who strongly “believed in the future of digital assets.”

High profile partners include the Boston Consulting Group, CMT Digital, Horizon Ventures, Intercontinental Exchange, M12 (Microsoft’s venture capital division) and Pantera Capital.

Significant Scope and Reach

The purpose of Bakkt is to enable consumers and institutions to seamlessly buy and sell digital assets whilst providing legally compliant and institutional-grade custodian services that will allow the major financial players to participate in the cryptocurrency markets.

It is anticipated that this will be the link that will finally connect existing fiat-based financial markets and traditional merchant infrastructure to the nascent crypto economy.

In her statement, Loeffler said that the project has already filed the necessary paperwork with the US Commodity Futures Trading Commission (CFTC) for regulatory approval in dealing with “physically delivered and warehoused bitcoin” and will “continue to onboard customers as we await the green light.”

Those lights are currently still on amber, however, as the original launch date of January 24th for the Bakkt Bitcoin (USD) daily futures contract has just been delayed at the request of the CFTC.

Bakkt is a subsidiary of the Intercontinental Exchange (ICE) which already has an extensive and close working relationship with the CFTC.

ICE operates 12 regulated exchanges and marketplaces which encompass the New York Stock exchange (NYSE) equity options exchanges, Over-the-counter (OTC) energy, credit and equity markets, as well as futures exchanges in the USA, Canada, Singapore and Europe.

While the initial amount raised for the Bakkt project is a significant number, it is dwarfed by ICE’s total assets which in 2017 were calculated to exceed $78 billion.