Cryptocurrency company Bakkt Holdings is expanding its reach into five new international markets — Latin America, the United Kingdom, the European Union, Hong Kong and Australia — in the fourth quarter and beyond.
The firm, which already provides services such as custody and secure and compliant platforms with customer control over their assets, now has several new clients as well as prospects in late-stage negotiations, the company reported Thursday (Aug. 10) during its second-quarter 2023 earnings call.
“We’re making solid progress on these efforts and hope to be live soon,” Bakkt CEO Gavin Michael said during the call. “As with everything we do, we’re being thorough and careful to ensure that we’re following all of the rules and regulations in these markets. Our compliance-first focus approach is what differentiates us, and we do not make compromises with it.”
Addressing the state of the crypto market in the United States, Michael noted a recent legal decision involving the Securities and Exchange Commission (SEC) and the Ripple exchange, saying it marked a setback for the SEC’s enforcement actions against industry participants and may help move legislation in Congress.
“I think when we look outside of the U.S., I think we’re seeing clarity coming to some of the markets that we’ve spoken about in our prepared remarks, ones that we’re excited about and we see the entry,” he said on the call. “But I think here in the U.S., we’re still seeing that ambiguity.”
Bakkt Chief Financial Officer Karen Alexander said during the call that the company is reducing its cash burn by 70% to 80% compared to the beginning of the year, in part by reducing its headcount, and has built much of the infrastructure and technology it needs to go to market.
“We are still investing in the crypto business, but we’re really being prudent in those additional investments, making sure that we’re putting them where there’s immediate product-market fit,” Alexander said.
One of those areas is custody.
“That is a great example of where the market is actually coming to us, recognizing what we contribute with our platform, with our compliance approach, with custodian,” she said on the call.
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