- Bakkt has partnered with Starbucks and issued an equity stake, in return for which the coffee chain will allow Bitcoin payments
- CFTC decision delays repeatedly pushed back the official announcement for this partnership
- Bakkt and Starbuck collaborating is a big step towards crypto adoption
On Tuesday, new reports surfaced revealing that Starbucks has received a significant equity stake in Bakkt so that the store would allow bitcoin payments in 2019.
In August 2018, Starbucks, the largest coffeehouse chain in the US, partnered with Bakkt. This agreement was to facilitate Bitcoin as a mode of payment for the chain’s products. However, Sthey clarified; it would not accept crypto directly but would allow the bitcoin conversion into USD at the point of sale. Although no cash investment was made, the partnership earned the company significant equity shares in Bakkt.
The Bakkt ecosystem is Expanding
The agreement between the two firms is of course mutually beneficial. Starbuck is a successful brand, and Bakkt being a global platform and ecosystem for digital assets, this partnership will provide maximum exposure for them both.
Maria Smith who is the Vice President of Partnerships and Payments for Starbucks had this to say:
“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.”
Smith added that, although Starbucks is a leader in Mobile Pay, they are still open to innovations by creating more payment options for its customers.
Bakkt’s regulatory issues a set back
Bakkt’s delayed launch has seemingly affected the Starbucks partnership launch as well. As we had reported late last year, Bakkt’s delay is not of its own volition; the government’s recent shutdown delayed the company from getting regulatory approval from the Commodity Futures Trading Commission (CFTC).
The launch was supposed to take place on the 24th of January, but has yet to happen and is affecting the partnership negatively as Starbucks wouldn’t want to be seen working with a crypto platform that has not yet received regulatory approval.
The partnership with Bakkt is a big deal in the crypto community because it will help change how people perceive cryptocurrency. Even if bitcoin has to be converted to fiat at the point of purchase, it still means you can pay for coffee with crypto. What remains now is for Bakkt to get regulatory approval.