Starbucks has received a significant portion of equity in Bakkt despite not being a cash investor. Bakkt which is owned by Intercontinental Exchange, is a service for people and institutions to seamlessly buy, sell, store, and spend digital assets. The amount of equity given to Starbucks is unknown, but sources say that it is “disproportionately high given that they did not make a cash investment”.
In return, Starbucks is now heavily investing in creating a card and app that will seamlessly allow it to serve as one of Bakkt’s first merchant on their platform, which will allow customers to pay with digital assets, reported by The Block. All digital assets will be converted to fiat, in order to reduce volatility, and keep the assets off of Starbuck’s books.
Back in August of 2018, Starbuck’s Vice president of partnerships and payment Maria Smith, gave a written statement about the company’s plans with Bakkt.
“As the flagship retailer, Starbucks will play a pivotal role in developing practical, trusted and regulated applications for consumers to convert their digital assets into US dollars for use at Starbucks.”
“As a leader in Mobile Pay to our more than 15 million Rewards members, Starbucks is committed to innovation for expanding payment options for our customers.”
Bakkt is also currently working with the US Commodity Futures Trading Commission to launch futures contracts that are physically back by Bitcoin, as well as with Microsoft, to utilize cloud solutions to allow people to use digital assets on a global network, to enter the retail consumer markets.
In addition, investors for Bakkt are expected to include, among others, a former affiliate of Fortress Investment Group, Eagle Seven, Galaxy Digital, Horizons Ventures, Alan Howard, Pantera Capital, Protocol Ventures, and Susquehanna International Group, LLP.
Read more about Starbuck’s recent involvement in crypto below:
Props to The Block for reporting.