Markets
ICE’s Bakkt to launch crypto ECN trading platform for institutions. Crossover Partners – Ledger Insights
Yesterday Bakkt announced that its electronic communications network (ECN) project for cryptocurrencies, BakktX, will use technology from Crossover Markets.
Registered Bakkt was founded in 2018 by the owner of the New York Stock Exchange, ICE, which still controls more than 55% of the shares.
“As institutional interest in crypto grows, expanding Bakkt’s capabilities is a key priority,” said Ray Kamrath, Chief Commercial Officer of Bakkt. “With the development of BakktX, we position ourselves as an ideal partner for institutions looking for a compliant and qualified trading platform. This will be a truly revolutionary solution that addresses a currently unmet need in the U.S. market. »
It’s the latest of several pivots for the company, but one of the most logical given ICE’s legacy.
Bakkt’s journey has been marked by strategic changes. It entered the market initially by offering futures contracts settled in Bitcoin, a move that sets it apart from competitors CME and CBOE. He then moved on to offering rewards and launched a consumer application in 2021, following the acquisition of the loyalty company Bridge 2 Solutions. In 2022, it diversified its offering into acquire Apex Crypto, a white-label crypto trading app provider for fintechs. However, in 2023, it made the decision to shut down its consumer app.
Since its inception, the company has provided custody of digital assets using its New York Trust Charter. It has over $1 billion in assets under custody.
As the company continues to suffer losses, it announced a $50 million direct offering in late February. Last month, it laid off 28 employees, or 13% of its workforce.
Meanwhile, Crossover Markets has its own CROSSx execution-only ECN, which claims to have a sub-20 microsecond matching engine. The startup has a handful of high-profile backers, including Nomura’s digital laserhedge funds Two Sigma and Flow Traders.