The Intercontinental Exchange has been working to bring their new crypto asset platform Bakkt into fruition for quite some time. Despite not being launched quite yet, Bakkt has still been working on its own development in the meantime. Most recently, the platform became the subject of a $182.5 million funding round, which is the first time that they have hosted this type of event.
The funding was announced by CEO Kelly Loeffler in a Medium blog post, which noted that the funding round included 12 partners. Some of those investors for the Bakkt round included Boston Consulting Group, Galaxy Digital, Goldfinch Partners, ICE, M12, Pantera Capital, and Protocol Ventures.
During the blog, Loeffler wrote,
“Our work today is centered on driving institutional access for digital assets, along with merchant and consumer uses, and we’re already expanding on this vision, collaborating with great companies like Starbucks in these efforts.” She also noted that there are still details to lay out, but both herself and COO Adam White “are focused on opportunities to provide new infrastructure, including the industry’s first institutional grade regulated exchange, clearing and warehousing services for physical delivery and storage.”
Bakkt released a separate announcement this morning, explaining that the original launch date of the Bitcoin futures market has been delayed, which CoinDesk had already suggested was likely with the government shutdown. Though the former date was January 24th, the new announcement does not provide an updated day.
Considering ICE’s background in the stock market as well, investors should have faith in the familiarity that this team has with bringing in innovative technologies, markets, and other platforms.
Loeffler uses the Medium post to remind readers of these facts, saying,
“We have worked to build new markets and products many times before. Those of us building Bakkt have earned our stripes by helping advance markets in once-nascent asset classes, from energy to credit derivatives and, now, bitcoin. The path to developing new markets is rarely linear: progress tends to modulate between innovation, dismissal, reinvention, and, finally, acceptance.”
Though some Bitcoin holders may have their patience tested with another delay, one which some believed would help with the coldness of the crypto winter, the new fundraising announcement brings hope. Loeffler recognized the veterans of multiple financial markets that are working on the Bakkt team, adding,
“The path to developing new markets is rarely linear: progress tends to modulate between innovation, dismissal, reinvention and, finally, acceptance.”
By moving too quickly into the market, there are too many risks. Explaining, the CEO said,
“While access to information as technology innovation occurs is extremely valuable, the risk is a ‘marking to market’ of innovations before they have a chance to mature. Few innovations reached their full potential in their first decade of development.”