Highlights:
- Apex Crypto offers a turnkey platform for integrated cryptocurrency trading that is tailored to the requirements of trading clients like neobanks and financial organizations.
- Bakkt is taking a significant step by purchasing Apex at a time when authorities are cracking down on the cryptocurrency sector.
Intercontinental Exchange Inc., which owns the New York Stock Exchange, founded the digital asset startup Bakkt LLC that revealed the completion of its acquisition of Apex Crypto LLC, a cryptocurrency trading company.
Apex Crypto offers a turnkey platform for integrated cryptocurrency trading tailored to the requirements of trading clients like neobanks and financial organizations. By facilitating the transaction of cryptocurrency investments, Apex offers answers through its services, including custody, exchange, cost basis, and tax services for cryptocurrency.
Following the purchase, Apex Crypto will provide Bakkt with over 30 business clients and a vast network of financial technology solutions. Since its start in 2019, the firm has reportedly handled over $12.5 billion in crypto transactions.
Gavin Michael, Chief Executive, said, “This acquisition marks an exciting new chapter for Bakkt, significantly advancing portions of our crypto roadmap, helping us tap into a universe of 5.8 million crypto-enabled accounts, and further establishing Bakkt as the [business-to-business-to-consumer] crypto provider of choice.”
Early in November 2022, Bakkt announced its agreement to buy Apex for up to USD 200 million. According to the agreement, the business would pay USD 55 million in cash after the transaction, then up to USD 100 million more in Bakkt stock and sellers notes based on Apex Crypto’s performance through 2025, or USD 45 million in Bakkt stock.
Bakkt is taking a significant step by purchasing Apex at a time when authorities are cracking down on the cryptocurrency sector. The firm has acquired permission from the New York Department of Financial Services and has obtained both a BitLicense and a trust charter. Both Bakkt and Apex were required to get regulatory clearance from other jurisdictions in which they operate as money transmitters.
Since Sam Bankman-Fried’s crypto exchange, FTX Trading Ltd. collapsed, causing a chain reaction of market volatility and big bankruptcies, times have been difficult for the cryptocurrency industry. The most recent setback to crypto banking possibilities was the closure of crypto-friendly Silvergate Bank due to market conditions and New York regulators’ control of Signature Bank.
Especially in international markets through Apex’s financial technology partners, Bakkt will expand its products and services through the acquisition to serve even more customers.
