Bakkt crypto exchange to debut on stock markets through SPAC

The Intercontinental Exchange, the owner the New York Stock Exchange and institutional cryptocurrency exchange Bakkt, announced a deal that would see its crypto arm listed on the stock markets.

As reported by the Wall Street Journal, Bakkt is set to merge with VPC Impact Acquisition Holdings, trading under the ticker VIH. VPC is a so-called "special purpose acquisition company," or SPAC. It is a shell company whose only purpose is to buy or merge with another company and allow it to be listed on the stock markets without going through the lengthy and expensive process of an initial public offering.

Bakkt is expected to be valued at $2.1 billion after completing the merger. The exchange will also raise an additional $532 million to support the development of Bakkt App, a retail-centric wallet and rewards app.

A Bakkt spokesperson told Cointelegraph that the merger is set to be completed in the second quarter of 2021. The combined company will be renamed as Bakkt Holdings, Inc. and will be listed on NYSE. The representative also said that Bakkt is now focused on delivering the app in March.

Rumors of the acquisition surfaced earlier in January, as reported by Cointelegraph. Bakkt has seen an uptick in volume this year, posting several consecutive records. Nonetheless, it has a much smaller crypto market presence than its rival CME.