Digital Asset Marketplace Bakkt Readies SPAC Merger

Bakkt Holdings, a digital asset marketplace, will merge with special purpose acquisition company (SPAC) VPC Impact Acquisition Holdings (VIH), according to a press release.

Bakkt works in a B2B2C model and allows users to convert holdings to digital assets or pay merchants directly.

The platform works with financial institutions (FIs) and merchant partners on infrastructure and accessing new markets. It offers new products at scale and helps with regulatory clarity, improved price discovery and better risk management.

“We are thrilled to have reached this milestone and look forward to successfully completing the proposed business combination with VIH,” said Bakkt CEO Gavin Michael in the release. “I want to thank our team members for their dedication, as we would not be here without their tremendous efforts. Now more than ever, we remain excited about the unique growth opportunities ahead for our business and are laser focused on furthering our vision of connecting the digital economy.”

The merger is expected to be approved by VIH shareholders Oct. 14, according to the release.

“Bakkt has an incredibly unique business model and value proposition and continues to unlock new ways for consumers, business and financial institutions to participate in the digital economy,” said VPC Impact Acquisition Holdings CEO John Martin in the release. “The company is a leader in this rapidly growing market of digital assets and has continued to advance its platform and partnership universe. As Bakkt becomes a public company, we believe there are significant opportunities ahead and look forward to supporting the company in this next phase of growth.”

In August, Michael said a successful payments and commerce network should be able to deal with all types of assets and transform illiquid assets into spendable ones. He said that this could unleash as much as $1.2 trillion in value.

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“We’re trying to be a new payment rail that allows people to get access to liquidity in assets that traditionally haven’t had liquidity associated with them,” he said at the time.