What happened
Shares of Bakkt Holdings (BKKT 8.16%) soared 234% on Monday, after the digital asset platform announced blockbuster deals with not one but two financial heavyweights.
So what
Bakkt is partnering with Mastercard (MA 3.39%) to help the debit and credit card processing titan provide its customers with a broad range of cryptocurrency services. These include the ability to buy, sell, and hold cryptocurrencies like Bitcoin (BTC +0.29%). In addition, Mastercard and Bakkt will give merchants and banks the ability to offer crypto-based loyalty rewards and payment cards.
"Together with Bakkt and grounded by our principled approach to innovation, we'll not only empower our partners to offer a dynamic mix of digital assets options, but also deliver differentiated and relevant consumer experiences," Mastercard executive Sherri Haymond said in a press release.
Bakkt's stock price surged on Monday. Image source: Getty Images.
Bakkt is also partnering with Fiserv (FISV 2.95%) to give companies more options when making payments to consumers and other businesses. The financial-services giant will work with Bakkt to help its customers more easily transfer cryptoassets into and out of mobile wallets.
"Whether it be buying Bitcoin from within a financial institution's app, redeeming loyalty points from their favorite restaurant for merchandise, using a digital asset wallet, or getting paid in Bitcoin for their side gig grocery delivery runs, consumers will have new opportunities to participate in the digital economy," Chief Revenue Officer Sheela Zemlin said.
Now what
Bakkt's deals with Mastercard and Fiserv could be a game-changer for the crypto industry. They are likely to raise awareness about cryptocurrencies among consumers and bolster businesses' confidence in their ability to integrate crypto services into their daily operations. Bakkt and its partners, in turn, could help Bitcoin and other cryptocurrencies go mainstream in the coming years.
