Just before the new year ushers in, Bakkt, the cryptocurrency venture of Intercontinental Exchange (ICE) announced that it has completed its first round of funding. The firm venture managed to raise a capital of $182.5 million from various institutional investors.
The announcement was made by Bakkt CEO Kelly Loeffler saying that the funds came from 12 partners and investors who share the same sentiments as Bakkt when it comes to the future of digital currency.
Bakkt’s first round of partners and investors include; Boston Consulting Group, CMT Digital, Eagle Seven, Galaxy Digital, Goldfinch Partners, Alan Howard, Horizons Ventures, Intercontinental Exchange, Microsoft’s venture capital arm, M12, Pantera Capital, PayU, the finch arm of Naspers, and Protocol Ventures.
Moving forward, the company is looking to provide new infrastructure such as a regulated exchange for its users and seeking approval to launch a one-day physically delivered Bitcoin futures contract along with physical warehousing.
We’ll share details as the New Year unfolds, but as our COO Adam White and I work through Bakkt’s 2020 objectives, we 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.
With a private venture such as Bakkt which has a reputable financial organisations backing it up the cryptocurrency industry maybe in for a bright 2020. Especially since 2018 is characterised by on and off performance from various cryptos such as Bitcoin. Currently, Bitcoin closes the year with a value of around $3,700 which is a long way from its $20,000 value initially. Bitcoin’s not so good reputation caused many to doubt the viability and security of crypto investments. The crypto industry certainly needs a respected firm like Bakkt.
“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,” says Loeffler. “The path to developing new markets is rarely linear; progress tends to modulate between innovation, dismissal, reinvention, and finally, acceptance.”