When it was revealed that Bakkt was backed by the likes of Microsoft and Starbucks, it caused quite a stir in the crypto community as these are some high-profile names getting behind the entity — plus, Bakkt itself is considered a major conduit for the participation of institutional investors.
Now more interesting news about the trading platform comes out: Starbucks has received equity in Bakkt, and in return the popular coffee chain will allow the use of Bitcoin for payments.
The Block reported the information, but it appears that Starbucks will not directly process cryptocurrency, as the BTC payment will be instantly converted into fiat currency.
The report quotes an anonymous source close to the effort:
In many ways, there are limits to what Starbucks can do with partnerships because there are limits to what customers can expect.
Starbucks will wait until Bakkt has launched and some stability has formed in its operations before offering the service. This will only be available to customers in the United States, before possibly being made available to stores in other countries.
Bakkt is yet to launch its platform and has experienced several delays, though the ICE CEO has said that it will launch in late 2019. It also has revealed the details of its Bitcoin futures which will launch later this year, subject to regulatory approval.
The Bakkt launch is widely anticipated, and it is expected to have a positive effect on the market. Institutional investment is expected to rise in 2019 and the inflow of funds from major investors ought to bring some stability and growth to the market which is still stagnant.