During his appearance on the Axios Re:Cap podcast, Bakkt CEO Gavin Michael revealed that his soon-to-be-public company plans to add new cryptocurrencies. Ripple-affiliated XRP, however, isn’t among the ones that are coming on board:
We entered the crypto space through Bitcoin...We have others that are scheduled to come on board as part of the product development but XRP is not available.”
“We are strongly regulated”
Many exchanges, including Coinbase, have announced that they would suspend XRP trading or delist the token after the U.S. Securities and Commission sued its issuer in late December.
The fact that Bakkt chooses to steer clear of the cryptocurrency that is now deemed as a security by the SEC is not even remotely surprising. While Michael dodged the question about Bakkt’s new FinCEN rules for self-hosted wallets, he touted his company’s focus on regulatory compliance:
“So, we believe in the need to continue to drive for regulation around the use of these environments as on-ramps to the financial system. We are strongly regulated. We have a very strong AML/KYC approach that needs the regulations that are currently being spoken about.”
Tapping into consumers’ crypto curiosity
Originally launched in September 2019, Bakkt is more than a crypto exchange or a custodian. Its consumer-centric app supports all kinds of digital assets — from loyalty points to gift cards and in-game assets:
“We are there to really drive this new agenda about bringing together loyalty and commerce platforms to accelerate the shift to digital assets.”
In its Jan. 11 press release, Bakkt outlined its plan to go public by merging with SPAC Victory Park Capital.
Michael says that the company’s IPO would provide more opportunities for crypto-curious consumers:
“I think it provides more opportunities for consumers who are crypto-curious to be able to easily enter the environment, enter the fray in a very easy-to-use app.”