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Bakkt ‘In Talks’ With Consumer Brands Looking to Accept Bitcoin (BTC) and Crypto: Report

September 30, 2019

Bakkt is quietly planning to boost the use of Bitcoin and cryptocurrency in everyday purchases.

Bakkt CEO Kelly Loeffler and Jeff Sprecher, the founder and CEO of Bakkt’s parent company, Intercontinental Exchange, confirm Bakkt is “in talks” with consumer brands looking to accept digital assets, reports Fortune.

Starbucks already plans to install Bakkt’s payment software in its stores, which customers can use to make their daily purchases in Bitcoin. The coffee giant reportedly holds “significant” equity in the company.

Bitcoin has the potential to disrupt the retail credit card industry from a cost perspective. On average, retailers have to pay fees of 1.95-2% for Visa, Mastercard and Discover transactions, according to CardFellow. That percentage rises to 2.3-2.5% for card-not-present businesses like online shops.

Bakkt officials told Fortune their immediate goal is to establish BTC as a reputable investment alternative, something the company says it took a step towards doing with the launch of its Bitcoin futures product last week. Their initial trading volume numbers have been underwhelming, however.

Economist and crypto analyst Alex Krüger noted the difference between Bakkt’s launch and the Chicago Mercantile Exchange’s first week with a futures product.

Bakkt's first week volume was approximately $5.8 million.

It managed to get traders interested in 5 bitcoin worth of its physically delivered daily futures. Quite the successful launch.

— Alex Krüger (@krugermacro) September 29, 2019

Either poor marketing, bad execution, few care, or a combination of these factors. I can only speculate.

— Alex Krüger (@krugermacro) September 29, 2019

Loeffler says Bakkt’s regulation and security will make Bitcoin more palatable to investment funds.

“The funds that trade on our exchanges expressed to us that they don’t want to deal in today’s unregulated markets, and want end-to-end federal oversight, on the level of the NYSE, to feel safe trading in Bitcoin.”

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.