Crypto platform Bakkt to go public through a SPAC
Intercontinental Exchange’s Bakkt plans to roll out an app for trading and making payments
Cryptocurrency platform Bakkt, which is majority-owned by Intercontinental Exchange, plans to go public through a merger with blank-cheque firm VPC Impact Acquisition Holdings.
The deal values Bakkt at about $2.1bn, according to a statement on Monday. Gavin Michael, the former head of technology for Citigroup’s global consumer bank, will join Bakkt as its CEO.
Bakkt, founded in 2018, is planning a widespread rollout of a mobile app in March that would allow consumers to use the $1.2-trillion held in cryptocurrencies, loyalty points and gift cards at more stores. In exchange, merchants are promised a lower cost for payment acceptance.
“The average consumer holds a wealth of digital assets but rarely tracks their value and lacks the tools to manage and utilise them,” Michael said in the statement, noting Bakkt’s aim is to “unlock trillions of dollars currently held in customer and loyalty accounts and allow consumers to put them to work”.
VPC, a special purpose acquisition company affiliated with Victory Park Capital, raised about $200m in an IPO in September. The vehicle has said its strategy is to identify and help grow a business in the financial-technology sector.
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