Bakkt, a cryptocurrency exchange and a liquidity provider, created by the parent company of the New York Stock Exchange, raised $182.5 million from high profile investors and venture capital firms including Boston Consulting Group, Galaxy Digital, Eagle Seven, and Goldfinch Partners.
There is little doubt that the market cap of the crypto-sphere is going to balloon with time. Bakkt is an example of how and why. A large surge of institutional investments would give cryptocurrency the legitimacy it needs to become mainstream. As the likes of Goldman Sachs and J.P. Morgan begin basing major business plans on trends in the cryptocurrency market, cryptocurrencies will be perceived as a more serious financial tool.
Bakkt plans to provide a platform for all types of cryptocurrency services, including trading and warehousing. Bakkt is made by the same company that created the New York Stock Exchange. Bakkt is supported by big names such as Microsoft, BCG, and Starbucks.
On August 2018, Bakkt announced that it would use Microsoft’s cloud service, Azure to create an open and regulated, global ecosystem for digital assets. Bakkt will feature inclusion of federally regulated markets and auxiliary services like warehousing, Bitcoin to fiat conversions. Bakkt plans to serve a digital marketplace with flows of $270 billion per year.
Bakkt hopes to service all of the cryptocurrency supply chain, including casual investors and mega-merchants such as Starbucks. With Starbucks being able to find ways to convert digital assets into U.S. dollars for use at Starbucks, many may be saying, “Coffee never tasted so good”.
A lot of big names are getting involved in the Bakkt project. A snowball effect of use of crypto is likely to take place because of the adoption of cryptocurrencies by big names via Bakkt. Companies who look to big names for guidance, are likely to follow suit as more and more big names adopt Bakkt.
Despite the criticism of cryptocurrencies by leaders of some of the biggest companies in the world, it is clear that their companies can’t help but endorse cryptocurrencies in some fashion. Bill Gate’s has, in the past, publicly criticised cryptocurrencies. Yet Microsoft, company he built from the ground up, will be a key player in the widespread adoption of cryptocurrencies in the world. It’s a beautiful thing to see the benefits of crypto penetrating more angles of society.