Dateline: Bakkt and Thredd, partnership, 13 October 2026

Thredd, the issuer processing platform, said on 13 October 2026 that it will power a planned US credit card-as-a-service program for Bakkt (NYSE: BKKT) that is designed to settle in stablecoins, according to the Thredd release. The release, Fintechbits notes, names no partner bank, no card network, no settlement stablecoin and no credit terms for the Bakkt credit card program, and its proof of concept is only targeted for the first half of 2027. That makes this a statement of intent from two infrastructure companies rather than a product anyone can apply for.

Deal: Initial proof of concept targeted for the first half of 2027, subject to bank, network and regulatory approvals

What the Bakkt credit card program is meant to do

Bakkt describes itself as operating regulated infrastructure for trading, stablecoin settlement and cross-border payments, and its subsidiary Bakkt Financial Solutions I is licensed by the New York State Department of Financial Services for virtual currency business and money transmission, according to the release and Bakkt’s licence page. The Bakkt credit card plan extends that settlement layer into consumer credit products that partner banks would issue, with Bakkt selling the program to its own clients as a service.

Thredd’s job on the Bakkt credit card program is the plumbing. The release says Thredd will handle card processing and integrated credit, plus tokenization, digital wallet integration, fraud and risk management and loyalty services tailored to the program. Thredd already serves more than 100 fintechs, digital banks and embedded finance providers across more than 50 countries, according to the same release.

Ankit Khemka, Bakkt’s chief product officer, put the bet plainly: “we believe stablecoin settlement can change the economics of consumer credit the way it is already changing the economics of cross-border payments.” Jim McCarthy, Thredd’s chief executive, said the platform “removes operational complexity so Bakkt can offer its clients a direct, reliable payment product.”

What the release leaves out

The disclosures at the bottom of the release say more than the headline does. They say Bakkt “is a financial technology company, not a bank,” that credit products are subject to partner bank approval, and that the program “has not launched and remains subject to regulatory approval, partner agreements, and other conditions.”

That list of conditions is where the open questions about the Bakkt credit card sit. A credit card needs an issuing bank to hold the receivables, a network to route the transactions and a funding source for the credit line. The Bakkt credit card release identifies none of the three. It also does not say which stablecoin would be used for settlement, who would hold it, or at which point in the card flow the conversion from dollars happens.

Fintechbits analysis

Fintechbits analysis

Why the settlement layer is the weakest part of the pitch

Stablecoin settlement makes the clearest case where money moves across borders and correspondent banking is slow and expensive. Domestic US card settlement already runs through mature bank rails, and the economics of a credit card turn mostly on interchange, interest income and credit losses. The cost of moving settlement funds between banks is a small line by comparison. Khemka’s claim that stablecoins can change the economics of consumer credit may prove right, but the release gives no number to test it against.

Thredd is a credible partner for the processing side of a Bakkt credit card. The release says Bakkt chose Thredd because its unified stack removes the need to build separate connections between consumer credit and payment components, and that the two companies are engineering the program around Bakkt’s requirements rather than a standard processing model. That is a reasonable reason to pick a processor, and it says more about integration effort than about the economics of stablecoin settlement. Fintechbits covered its role in FinXP’s card processing and BIN sponsorship offer in Europe, and stablecoin-linked card programs are spreading, as Visa’s data on stablecoin business card programs showed. The harder parts of the Bakkt credit card plan sit with whichever bank agrees to issue it.

The timing of the Bakkt credit card also matters. A proof of concept targeted for the first half of 2027 is a test of the idea, and the release attaches four conditions to even that: product readiness, client launch timing, bank and network requirements, and approvals. Our read is that this announcement positions Bakkt’s settlement story with investors more than it describes a product that consumers will see soon.

Frequently asked questions

What is the Bakkt credit card program?

It is a planned credit card-as-a-service program in the United States that Bakkt would offer to its clients, with cards issued by partner banks and settlement designed to happen in stablecoins. Thredd will provide the card processing and credit infrastructure.

When will the Bakkt credit card launch?

The release targets an initial proof of concept for the first half of 2027. It says the program is subject to product readiness, client launch timing, bank and network requirements and applicable approvals.

What does the Bakkt and Thredd release leave out?

The release, Fintechbits notes, names no partner bank, no card network, no settlement stablecoin and no credit terms for the program. Those are the details that decide whether the product can be issued at all and whether stablecoin settlement saves anyone money.

What to Watch Next

The test of this deal is the name of the issuing bank. Until Bakkt or Thredd identifies a partner bank willing to hold the receivables, and a network willing to carry a stablecoin-settled credit product, the first-half 2027 proof of concept remains a target rather than a plan.

Why this matters

The release, Fintechbits notes, names no partner bank, no card network, no settlement stablecoin and no credit terms for the Bakkt credit card program announced on 13 October 2026. Thredd will supply processing, credit infrastructure, tokenization and fraud tools, and a proof of concept is targeted for the first half of 2027. The deal shows stablecoin settlement moving from cross-border payments toward consumer credit. Two things are still unknown: whether any issuing bank signs up, and whether stablecoins save money on domestic card rails at all.

Primary sources

businesswire.com | PRESS RELEASE | https://www.businesswire.com/news/home/20261013960744/en/Bakkt-Selects-Thredd-to-Power-Credit-Card-as-a-Service-Program-Settling-in-Stablecoins

bakkt.com | COMPANY WEBSITE | https://bakkt.com/licenses