Digital asset platform Bakkt entered into an agreement with Apex Fintech Solutions, Inc. to acquire Apex Crypto, LLC. Bakkt, which is expected, will acquire Apex Crypto, LLC for a price tag of $200m, and make its first payment, $55 million, at the close of the deal. The transaction is subject to regulatory approvals . It is expected that the transaction will be completed in the first half 2023.
Apex Crypto was launched in 2019 and is a “turnkey platform” for integrated cryptocurrency trading. It was created with the intent of meeting the growing demands of over 30 fintech companies and their customers. Apex Crypto was designed to allow investors to switch between trading equities or cryptocurrency. It offers efficient account opening and financing solutions, and can also handle complex regulatory and licensing requirements.
Bakkt’s acquisition Apex Crypto will increase its cryptocurrency product offering, and expand its client base to fintech firms, trading apps platforms, and neobanks. Apex’s 220+ clients can now access crypto solutions through Bakkt. This collaboration is expected to increase product innovation and develop crypto products such as external transfers and nonfungible tokens. Bakkt is expecting to increase its revenue and diversify its offerings as a result of the agreement.
Related: Bakkt cryptocurrency exchange partners with Google to make payments
Bakkt was launched by the Intercontinental Exchange ( BTC ) in 2018. It first offered Bitcoin futures contracts to only accredited investors. The platform launched a payment app that allows users to use crypto to purchase goods in March 2021. This was to increase consumer spending, lower payment costs and boost merchant loyalty programs.
Bakkt’s rollout was slower than most in the space expected. The initial purpose of the platform was to encourage institutional adoption of crypto, but it has since been expanded to include retail-oriented apps as well as institutional-facing futures contracts.
Bakkt became public in October 2021 through a merger with VPC Impact Acquisition Holdings, a special-purpose acquisition company. The Bakkt shares were listed on the New York Stock Exchange at $9.45 at the time, but they are now trading at $2.00 as of this publication.