Bakkt Holdings, Inc. is undergoing a major transformation to become a focused crypto and stablecoin infrastructure provider. This shift comes after losing key banking partners and signals a move away from diversified offerings towards global digital payments and regulated crypto trading. In partnership with Distributed Technologies Research (DTR), Bakkt aims to integrate AI and stablecoin infrastructure into its operations.
In a significant move to adapt to changing market dynamics, Bakkt Holdings, Inc. is restructuring its operations, transforming into a dedicated infrastructure provider for crypto and stablecoin transactions. This shift follows a challenging year marked by the loss of key banking partners. Company officials, including co-CEO Andy Main, have stated that this new focus will position Bakkt to thrive amid evolving regulations in the digital asset landscape.
Backed by the Intercontinental Exchange (ICE), which also oversees the New York Stock Exchange, Bakkt plans to streamline its services, moving away from its previous multi-faceted approach. Their aim is now centred on global digital payment solutions and regulated trading of cryptocurrencies. During the recent earnings call, Main noted that they are moving forward with renewed momentum, leveraging regulatory changes to seize new opportunities.
In Q1 2025, Bakkt struck a partnership with Distributed Technologies Research (DTR) to integrate its AI and stablecoin payment infrastructure. Co-CEO Akshay Naheta highlighted the potential of this collaboration, stating that by merging DTR’s advanced technology with Bakkt’s regulated trading platform, they’ll create an ecosystem that enables seamless transactions across crypto and traditional money channels.
This partnership, while contingent upon a definitive commercial agreement, is expected to mature into practical applications by Q3 2025. New offerings could include a merchant checkout tool and an AI-driven plugin for global payment transfers. Essentially, Bakkt sees this as a push towards agentic commerce, where AI can handle transactions autonomously and efficiently across different jurisdictions.
Bakkt’s agreement with DTR also provides access to essential APIs that will allow for improved payment methods, including fiat-to-stablecoin bridges and foreign exchange agreements in numerous countries. The integration will meet SOC 2 compliance standards, essential for maintaining trust and operational excellence in the fintech sphere.
This pivot comes after Bakkt’s 2024 strategy to exit non-core businesses. The company has already divested from its crypto custody services and continues talks to sell its loyalty division, allowing them to focus on their crypto infrastructure and payment solutions.
However, challenges persist. While Bakkt’s revenue is showing signs of growth, sourcing stability amidst fluctuating crypto trading volumes remains a concern. The success of their new product launch depends heavily on the partnership with DTR progressing smoothly.
Bakkt is also looking to stablecoins as a central part of its strategy. Currently accounting for just a small fraction of cross-border payments, predictions suggest a rise to 20% of this market, equating to a whopping $64 trillion by 2032. With the ION network from DTR, Bakkt aims to facilitate on-chain currency exchanges and secure custody solutions in over 90 countries.
Future products are anticipated to streamline payments for merchants, enabling them to accept stablecoin transactions with immediate fiat conversion. Bakkt’s leadership, including new Chief Product Officer Ankit Khemka, envisions making financial actions intuitive, such as voice-activated payments without the hassle of wallet downloads or extensive onboarding processes.
In their latest quarter, Bakkt reported net revenues of $12.6 million, marking a 25.9% drop year-on-year due to partner exits and fewer loyalty transactions. Yet, despite a decline in quarterly crypto trading volumes, there has been a year-on-year rise, showing resilience in user engagement. Bakkt’s total crypto-enabled accounts rose to 6.8 million, with assets under custody climbing to $1.87 billion, aligning with trends in the broader crypto market.
