Bakkt Speeds Up Plans to Improve Consumer Payments Acquiring Rosenthal Collins Group Assets
Bakkt entered into an agreement to acquire certain assets of Rosenthal Collins Group (RCG), an independent futures commission merchant that has around 100 years operating in the market. The information was released in a blog post on January 14 by Kelly Loeffler, the CEO of Bakkt.
This acquisition confirms that the crypto trading company is working hard in order to streamline consumer payments using digital currencies. That includes paying for a cup of coffee or a car. Apparently, the latest acquisition includes a part of Rosenthal’s back office.
Rosenthal Collins is a company specialized in managing commodities accounts for investors and institutions. In order to do so, it moves money, handless collateral, and steers trades.
In a recent report released by Fortune, Kelly Loeffler explained about the new deal:
“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.”
With this acquisition, Loeffler explains that Bakkt will be enhancing its risk management and treasury operations with systems and expertise. At the same time, this acquisition will also be enhancing regulatory and customer service operations, including AML and KYC policies.
As Loeffler explains, Bakkt is not just ‘standing still’ as they wait for the regulatory approval by the CFTC to launch regulated trading of crypto markets. In order to accomplish Bakkt’s goals, the team needs to invest significantly in technology to improve the platform and enhance it. This would allow it to deliver the most trusted fintech ecosystem for digital assets in the market.
Bakkt is partnering with Starbucks to build the template. The payments will be available for use in applications. It is now possible to pre-fund a prepaid card or store value in just a digital application.
Back in December 2018, Loeffler announced that the Bakkt platform was delayed once again until January 24. However, the platform needs to wait for the approval of the CFTC before being able to operate in the crypto market. Furthermore, Bakkt raised $182.5 million from 12 different investors.
The company is already talking with different exchanges outside the United States, including Europe and Singapore. This is one of the biggest bet made by a major financial player to improve crypto adoption at both the retail and institutional level.