Buying coffee with Bitcoin? Well, sort of.
The company, which shares a parent with the New York Stock Exchange, has released a digital wallet with partners including Starbucks, Best Buy, and other merchants.
The Bakkt wallet stores Bitcoin and loyalty points and gift cards, which it calls digital assets. These funds can be converted within the app to fiat currency and spent with merchants.
A user of the Bakkt wallet could use his or her Bitcoin, or loyalty points from Bakkt's other merchant partners, convert them into USD then reload their Starbucks Card on the coffee chain's iPhone app to buy a Frappuccino.
Bakkt's wallet launch comes as PayPal unveiled the latest phase of its cryptocurrency offering, allowing its U.S. customers to pay with cryptocurrencies at its 29 million merchants globally.
Yet, Bakkt's focus on enabling consumer payments with cryptocurrency isn't new. When the company launched in 2018, it in short order struck a partnership with Starbucks. The coffee company said at the time that it would "play a pivotal role" in developing ways for customers to convert digital assets into dollars to be used at its stores.
But the wallet product was perennially delayed as Bakkt built a seemingly unrelated institutional business, which includes Bitcoin custody and futures.
As Bakkt goes public with a valuation of $2.1 billion, its original premise of a consumer-facing product for customers to trade their cryptocurrency for coffee is finally ready to be tested in the market.