Bakkt, in a recent post on Twitter, posted on the 8th of this month, announced that its first acquisition has been finalized. Bakkt is an Intercontinental Exchange operated crypto exchange platform.
Bakkt Acquires Rosenthal Collins Group Assets
The post was announcing the finalization of the acquisition of RCG (Rosenthal Collins Group) which is a merchant for assets in futures commission. The post stated that with the closing of the transaction with the Rosenthal Collins Group, Bakkt is welcoming the new team members in to the fold. It goes on to say that through its acquisition of certain assets of RCG, Bakkt is hoping to build a digital assets’ institutional infrastructure that can be trusted which will be possible with the expertise, culture and heritage that comes with the acquisition of RCG.
The announcement that Bakkt was looking to acquire assets in RCG was made public mid last month. During the time of the announcement the company’s chief executive Kelly Loeffler explained that with the new acquisition in progress the company will have to slow down its operations. This slowing down of operations would be on until the United States CFTC (Commodity Futures Trading Commission) has approved the Crypto markets’ regulated trading to be launched.
The CEO also stated that the acquisition would see Bakkt expand its operations in risk management and treasury through the systems and expertise that will come with the purchase. Loeffler also added that the company will also be able to improve on its KYC (Know Your Customer) and AML (Anti-Money Laundering) policies.
New Acquisition Profitable for Bakkt
The Intercontinental Exchange (ICE) on the 7th of this month made its earning call for the fourth quarter of 2018. In the earnings call, which took an hour, the chief financial officer for ICE Scott Hill made a mention of Bakkt stating that the investment the company was making in the digital assets platform was going to generate $20 to $25 million in expense going by the first quarter’s run rate. Also during the call the chairman and chief executive on the company Jeff Sprecher referred to Bakkt as a moonshot bet. ICE is the New York Stock Exchange’s parent company alongside more than twenty other exchanges.
As had been announced previously, the intercontinental exchange had first made an announcement of Bakkt in August of last year. Late last year, in December, ICE announced that it will be updating the Bakkt Bitcoin Daily Futures Contract timeline this year. The launch update will be carried out in accordance with the approval process given by the CFTC.
Recently Bakkt announced, through publication on its website, that it has vacancies for eight posts in the company. The vacancies, which include positions for data engineers, are to be posted in New York and Atlanta.
Launch Date Postponement
Initially the platform was slated for launch in December last year but the launch date was later changed to the 24th of January. However, with the extended government shutdown, the company postponed the launch date yet again. The new launch date has not been announced.