Intercontinental Exchange is set to acquire loyalty program provider Bridge2 Solutions, the firm announced Wednesday.
Following the closure of the deal, the company will be acquired by Bakkt, the cryptocurrency venture by ICE. Bakkt will use funds from its $182.5M Series B funding round for the deal. Bridge2 Solutions offers loyalty rewards solutions for merchants and financial institutions.
It would be Bakkt's third acquisition following that of Digital Asset Custody Company and Rosenthal Collins Group, a futures commission merchant.
Bakkt is best known for its institutional trading products, including crypto futures and options, but it's planning to roll out a consumer-facing app with partners such as Starbucks. The app, which many thought would just support crypto, will likely host crypto assets, loyalty points, and in-game tokens, according to Bakkt CEO Mike Blandina.
"Bakkt’s second round of funding, and its acquisition of Bridge2 Solutions, will help accelerate the development of Bakkt’s consumer application, which has been a key part of our strategy since we first looked at this market," Jeff Sprecher, CEO of ICE, said in a statement.
Bakkt will leverage Bridge2 Solution's existing merchant relationships to build out its products.
"Combining Bridge2 Solutions’ embedded relationships with banks and merchants and their innovative Loyalty Pay solution will enable us to launch new products that further drive loyalty and empower consumers to trade, transfer and spend digital assets in entirely new ways," Blandina said.
The terms of the acquisition – which is expected to close later this quarter – are pending.