Bakkt Holdings, Inc. (NYSE: BKKT) operates a digital asset platform that is used to buy, sell and spend cryptocurrency. Shares of the cryptocurrency exchange operator skyrocketed 200% through late trading on Monday, October 25, 2021. Over the past three months, Bakkt has seen an average daily volume of 1.59 million shares. However, volume of 163.13 million shares or dollar volume of $4.09 billion, has already exchanged hands through late Monday trading.
Shares of Bakkt Holdings surged after the company issued two separate press releases discussing their new partnerships with Mastercard, Inc. (NYSE: MA) and Fiserv, Inc. (NASDAQ: FISV). Both of the new collaborations focus on expanding mainstream access to cryptocurrency transactions and loyalty programs.
Mastercard Partnership Announcement
The first partnership announcement was with Mastercard. The two entities stated in their joint press release they seek to “make it easier for merchants, banks and fintechs in the U.S. to embrace and offer a broad set of cryptocurrency solutions and services.” Mastercard users will have the option to buy, sell and hold cryptocurrency, as well as crypto-based loyalty rewards and crypto-branded debit and credit cards.
The Mastercard collaboration is huge for Bakkt and the cryptocurrency world overall. This now allows Mastercard’s massive customer base of 249 million to access cryptocurrency. Combining Bakkt’s digital asset platform with the Mastercard network could be a major source of cash flow for Bakkt, as well as user adoption for the broader crypto markets.
“Mastercard is committed to offering a wide range of payment solutions that deliver more choice, value, and impact every day,” said Sherri Haymond, executive vice president, Digital Partnerships at Mastercard. “Together with Bakkt and grounded by our principled approach to innovation, we’ll not only empower our partners to offer a dynamic mix of digital assets options but also deliver differentiated and relevant consumer experiences.”
Finserv Partnership Announcement
Later in the day, Bakkt announced a second partnership with Fiserv, Inc. (NASDAQ: FISV), a global financial technology and payments solutions provider. The strategic partnership integrates Bakkt’s crypto platform with Finserv’s transaction technology. In addition to merchant capabilities, Finserv will allow its financial institution clients to access Bakkt’s platform as well.
Finserv and Bakkt are planning future integrations, which may feature Bakkt’s technology into the Carat omnichannel ecosystem. This would allow for businesses to accept cryptocurrency, as well as offer crypto-based loyalty programs.
“Carat is a trusted solution for businesses, including fintechs, that want to access a broad range of commerce-enabling capabilities, such as the ability to accept and disburse funds, from a single provider,” said Nandan Sheth, Head of Carat and Digital Commerce at Fiserv. “Bakkt will be leveraging these capabilities while also working with us to build emerging merchant experiences that help bring crypto-assets into the mainstream.”
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