Bakkt LLC, a digital asset startup founded by New York Stock Exchange owner Intercontinental Exchange Inc., announced on Monday that it has completed the acquisition of cryptocurrency trading firm Apex Crypto LLC.
Apex Crypto provides a turnkey integrated cryptocurrency trading platform designed to meet the needs of commercial clients such as financial institutions and neo-banks. Through its services, Apex offers solutions, including cryptocurrency custodial, exchange, basis, and tax services, that make it easier to manage crypto investments.
With this acquisition, Apex Crypto will provide Bakkt with more than 30 corporate clients and an extensive network of fintech solutions. Since its launch in 2019, it has processed $12.5 billion in cryptocurrency transactions, according to the company.
“This acquisition marks an exciting new chapter for Bakkt, significantly advancing part of our cryptocurrency roadmap by providing access to 5.8 million cryptocurrency-enabled accounts and further strengthening Bakkt as a provider of cryptocurrency [for business]. By choice,” said CEO Gavin Michael.
Bakkt announced an agreement to acquire Apex in early November 2022 for a maximum purchase price of $200 million. As part of the deal, the company said it would pay $55 million in cash at closing, followed by $45 million in Bakkt shares based on Apex Crypto's performance in Q4 2022, and up to $100 million in Bakkt stocks and bonds. productivity by 2025.
The acquisition of Apex comes at a time when regulators are cracking down on the crypto industry, making it a major move for Bektor. The company is based in New York, where it is licensed by the New York City Department of Financial Services and holds a BitLicense and Trust Charter. Bakkt and Apex had to get regulatory approval from the other states they operate in, where they have money transfer licenses.
The cryptocurrency industry is going through a tough time following the collapse of Sam Bankman-Fried's FTX Trading Ltd. Market volatility and business failures have had a ripple effect. More recently, the cryptocurrency-backed Silvergate Bank ceased operations due to market conditions and New York City regulators took over Signature Bank, crippling crypto opportunities. -bank.
Through this acquisition, Bakkt will expand its products and services in international markets to reach more customers, including through Apex's fintech partners.