According to a new report, there is “significant equity” being held by Starbucks in the upcoming crypto platform Bakkt. Starbucks is one of the biggest companies in the world which specialises in providing the everyday businessman to coffee and snacks. The firm has now earned its shares as part of a mutually beneficial agreement.
Starbucks will be getting ready to install Bakkt’s payment software in its stores, which customers can use to pay with cryptocurrency. The digital assets will be instantly converted to fiat, in order to keep cryptocurrencies off of Starbucks’ history.
In terms of the amount of equity that Starbucks has got in the deal, nothing has been revealed as of yet but sources close the arrangement say “suggest it is disproportionately high given they did not actually make a cash investment.” Starbucks’ partnership with Bakkt was initially revealed in August of last year.
Throughout 2019, Bakkt is planning to offer a number of crypto-related services this year. The Intercontinental Exchange owned company is working to launch physically-backed Bitcoin futures pending approval from the US Commodity Futures Trading Commission.
In the next phase of the operation, Microsoft is going to get involved cloud solutions are allowing people to buy, sell, store and spend cryptocurrencies on a global network, giving the power to provide Starbucks customers with a way to buy food and drinks with crypto.
In August, Starbucks vice president of partnerships and payments Maria Smith highlighted the firm’s plans with Bakkt:
“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.
As a leader in Mobile Pay to our more than 15 million Starbucks Rewards members, Starbucks is committed to innovation for expanding payment options for our customers.”
One of the reasons behind the move is to get a millennial audience involved. One that is driving the mobile economy and to implement Bitcoin into everyday life which makes it a practical payment option on a nationwide scale at a top retailer.
We are expecting to see crypto payments to come to Starbucks during May this year.