Bakkt to sunset app as focus turns to scaling B2B business

• Bakkt App will officially terminate on 16 March 2023, the firm announced today.
• However, Bakkt says app users will still access their cryptocurrencies and cash through a new web experience.
• The company says its focus now is on scaling its business-to-business-to-consumer (B2B2C) solutions.

Bakkt, a leading custody and digital economy provider for cryptocurrency, loyalty, and commerce, has announced its sunsetting its consumer app. Instead, the company will focus more on providing the market with scalable business-to-business (B2B) technology solutions.

However, even as it pulls the consumer-facing app, it will continue to offer a platform from which businesses can leverage the benefits of crypto and loyalty programs.

Bakkt to focus on B2B2C strategy

A press release the company published on Monday stated that app customers will still access digital assets through SaaS and API solutions. These solutions will now be available on a new, secure and compliant web platform.

Gavin Michael, President & CEO of Bakkt, commented that the move is part of the company’s “business-to-business-to-consumer (B2B2C) strategy.

“We are laser focused on providing our partners and clients with seamless solutions that best serve their needs,” he noted. 

According to the Bakkt chief executive, discontinuing the consumer app gives it an opportunity to continue supporting the relationship the firm’s partners and clients have had with respective customers. He added:

“With this move, we are focusing our investment on our core solutions that have product-market fit and are positioned to scale quickly.”

As noted in the press release, Bakkt expects to officially sunset the consumer app on 16 March 2023.

App users will still access their crypto and cash after this date though, with this possible across all devices via new web experience. For instance, customers will still have access to crypto balances and transaction reports – the latter being helpful for tax purposes.

Crypto regulation 

Bakkt signaled its move last November with the planned acquisition of Apex Crypto, a turnkey platform by Apex Fintech Solutions, Inc. The platform offers integrated crypto trading services to over 30 fintech partners and more than 5 million customers. 

But its announcement today comes amid increased regulatory activity, particularly after last week’s news that crypto exchange Kraken had agreed to pay a $30 million fine over its staking-as-a-service offering. Kraken also agreed to halt the crypto staking service in the US. 

The latest in the crypto actions is stablecoin issuer Paxos Trust being ordered to stop issuing the BUSD stablecoin, with reports the SEC was suing the company for offering an “unregistered security.” As reported, one crypto expert believes the recent SEC actions suggest the war on crypto is just but beginning.

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