ICE to spend $20 million on Bakkt and its Bitcoin futures trading
Intercontinental Exchange (ICE), the parent company behind the New York Stock Exchange (NYSE) says that it will spend nearly $20 million on Bakkt and its futures trading and crypto custody solutions. This news was made public by the exchange in its ‘Earning Call’.
As per Scott Hill, CFO at ICE, the exchange will generate $20 million to $25 million of expense based upon the run rate in the first quarter.
“We will update you on progress at Bakkt and the level of investment as we move through the year. We delivered another record year in 2018 and we have momentum entering 2019,” he added.
Speaking with buoyed optimism, ICE CEO Jeff Sprecher said:
“As we look to 2019 and beyond we’re excited about the opportunities that lie ahead, not only for our core business but also for newer initiatives such as ICE Mortgage Services, our fixed-income businesses and Bakkt which recently raised over $180 million in its first round of funding.”
This latest announcement comes just weeks after ICE’s subsidiary, Bakkt completed its first round of funding on New Year’s Eve, raising $182.5 million from 12 partners and investors.
Some of the leading names who took part in the funding round included Boston Consulting Group, CMT Digital, Galaxy Digital, Goldfinch Partners, Horizons Ventures, Microsoft’s venture capital arm, Pantera Capital, PayU, and Protocol Ventures among others.
“Our work today is centered on driving institutional access for digital assets, along with merchant and consumer uses, and we’re already expanding on this vision, collaborating with great companies like Starbucks in these efforts,” said Kelly Loeffler, CEO of Bakkt at the time.
In another twist to the tale, fraudsters used Bakkt’s brand to dupe unsuspecting users. The impersonators sent emails to users and asked them to register and send Bitcoin to a fake Bakkt website. They also made the announcement that Bakkt was going to be launched on March 12, 2019, and it was going to raise another $50 million. This fraud scheme was brought to light by CoinDesk who got a similar mail from the fraudster.
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