Crypto Exchange Bakkt Plans Public Listing with SPAC Merger

US-based cryptocurrency Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term, Bakkt is planning for a public listing with a merger with blank-check acquisition firm, VPC Impact Acquisition Holdings, and the two companies are already in advanced talks, Bloomberg reported on Friday.

Founded in 2018 Bakkt is owned by New York Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term (NYSE) parent Intercontinental Exchange (ICE). According to anonymous ‘people with knowledge of the matter’, the two entities are looking at a valuation of more than $2 billion if the merger deal goes through.

Though neither of these companies confirmed the deal, an official announcement is expected by next week.

Crypto Companies Approaching Mainstream Market

Bakkt is well-known for offering regulated cryptocurrency derivatives in the United States. Started with Bitcoin-settled futures in late 2019, the exchange expanded its product line by adding many other crypto derivatives products, including options.

With a valuation of over $1 billion, Bakkt raised over $482 million over the years from investors like Microsoft, Pantera, PayU and a few others. It closed its last financing round in March last year after raising $300 million.

Moreover, the crypto exchange acquired loyalty program provider, Bridge2 Solutions last year to sweeten its offering for merchants and institutions.

Meanwhile, going public with a special purpose acquisition company or SPAC merger gained a lot of popularity last year as private companies are looking at this as an easy route to go public. $73 billion out of the total $140 billion in new US listings were raised by SPAC last year, according to Goldman Sachs data.

Finance Magnates earlier today reported on SoFi’s upcoming merger with a similar blank-check company.

VPC, the company with which Bakkt is considering a merger, is an affiliate of Victory Park Capital and raised around $200 million in its initial public offering (IPO) last September.