Starbucks To Accept Cryptocurrency on the Bakkt Platform

Jack Parkos | @laissez_faire76

Coffee chain Starbucks has reached an equity deal with US cryptocurrency platform Bakkt. The Block reported that they received a “sizable equity cut” and that Starbucks will be heavily involved in the process of developing the app. For receiving this equity, Starbucks will allow Bitcoin to be used to purchase drinks at their stores.  Bakkt has a vision of creating a new global market to trade and store online assets in the form of crypto.

What is Bakkt?

Bakkt was announced in August of 2018 by Atlanta based ICE as a new platform for trading crypto. CEO Kelly Loeffler explained that  “Bakkt is designed to serve as a scalable on-ramp for institutional, merchant, and consumer participation in digital assets by promoting greater efficiency, security, and utility,” and that they are trying to create “an open platform that helps unlock the transformative potential of digital assets across global markets and commerce.”

Furthermore, Bakkt is also seen as a more secure way for one to store their assets.

Many Wall Street investors and prominent companies are looking into using Bakkt.

Bakkt hopes to create a system that allows people to use their online assets in everyday purchases. The cryptocurrency trading platform serves as the middle man between the merchant and the customer using the cryptocurrency. 

Transactions would be facilitated on the Bakkt app. One would make their purchase using crypto, while Starbucks would exchange the cryptocurrency for fiat backed currency. This system will first be implemented in the United States.

Why the platform is still important

This technology will allow inexperienced people to get in on the crypto trend. Many more people could become regular users of cryptocurrencies, and a shift to a blockchain world may be seen. The Bakkt-Starbucks deal is one step towards expanding and growing the crypto market.

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