Bakkt is seeing active onboarding of new clients focused on trading and storing digital assets. This was stated by Gavin Michael, the CEO of the institutional platform, during conference with analysts from Water Tower Research.
According to the executive, by expanding the client base and prudent capital expenditures, the company has managed to lift gross margin.
Based in the United States, Bakkt has completed a number of acquisitions and struck deals with several organisations, creating conditions to penetrate the Latin American market in the fourth quarter, with plans for further expansion into the United Kingdom, the European Union, Hong Kong and Australia.
Michael noted the April acquisition of the Apex broker platform. Alongside the establishment of partnerships with fintech Plaid and custodian Fireblocks, this has created the potential for a strong influx of new clients.
The company is considering the potential introduction of ETF as a factor strengthening its position in the industry.
Bakkt’s second-quarter revenue reached $348 million. For comparison, in the same period last year the figure was only $14 million. Meanwhile, the platform’s trading volume fell 51% to $531 million.
Michael said the growth in the company’s product sales in the first half of 2023 was tenfold compared with the same period last year. He explained that the momentum was driven by interest from family offices, registered investment advisers and corporate treasury departments.
In the near term, the firm plans to add more assets to the platform and integrate institutional staking support.
In May 2023, Bakkt leadership allowed the possibility of developing its business in Europe amid the strengthening of the local regulatory framework.