An AI-first issuer processing platform Thredd said it has partnered with Bakkt to build a stablecoin settled Credit Card-as-a-Service program in the U.S. The initiative brings together modern card processing and digital asset infrastructure. It is for a credit-card-as-a-service program that will settle in stablecoins. The partnership combines Bakkt’s digital asset infrastructure and Thredd’s payment processing capabilities. The companies will jointly simplify the development and management of consumer credit products. The partnership will also link Bakkt’s settlement infrastructure with credit card services from partner banks.
Bakkt, Inc. offers regulated infrastructure for trading, stablecoin settlement, and cross-border payments. Its services are the basis of the AI and token economy. Thredd will offer integrated credit infrastructure and modern card processing through this partnership. The platform will offer tokenization, digital wallet integration, fraud and risk management and loyalty services. These capabilities will be customized for the upcoming credit card-as-a-service program. This enables Bakkt to apply its existing settlement infrastructure to consumer credit products.
“Launching a credit card that would settle in stablecoins requires tight integration across processing, lending, and digital asset infrastructure,” said Jim McCarthy, CEO of Thredd. “By combining modern card processing with flexible credit capabilities, our platform removes operational complexity so Bakkt can offer its clients a direct, reliable payment product.”
Unified Technology to Simplify Credit Card Operations
Thredd was chosen by Bakkt due to the fact that its integrated technology stack makes integration of payment and credit elements easier. In the past, firms had to create and manage multiple different connections in their systems, which added a considerable layer of complexity. With Thredd’s integrated model, the process of connecting is greatly simplified. The companies are developing the program according to Bakkt’s needs. Instead of applying rigid, traditional processing models, they are now implementing an approach that fulfills the requirements of the product in the making.
It’s a Credit Card-as-a-Service combination of credit capabilities with modern payment processing. It connects digital asset infrastructure to consumer-facing financial services. The method could ease the operations of companies that issue credit cards settled in stablecoins. Settlement with stablecoins is an increasingly popular topic in digital payments. As such, incorporating stablecoins into consumer credit products could present an additional pathway linking conventional financial services to virtual assets.
Company Leaders Recognize the Potential of the Partnership
McCarthy emphasized the need to link card processing, lending and digital asset systems. The partnership aims to consolidate these capabilities into an integrated platform. It means Bakkt can now focus on launching its planned payment product to clients.
“We run regulated rails that move value for institutions, and we move it across borders on demand. This program is designed to bring that same settlement infrastructure to everyday spend,” said Ankit Khemka, Chief Product Officer at Bakkt. “Thredd’s technology and proven payments infrastructure give us one integration where the market expects many, and we believe stablecoin settlement can change the economics of consumer credit the way it is already changing the economics of cross-border payments.”
Khemka emphasized the potential to extend Bakkt’s settlement Credit Card-as-a-Service infrastructure into everyday consumer spending. He also highlighted the value of reducing the number of integrations required to support the program. Moreover, Bakkt sees potential for stablecoin settlement to influence consumer credit economics. The company draws a comparison with cross-border payments, where digital asset infrastructure can change how businesses move value.
Proof of Concept Targeted for 2027
An initial proof of concept is targeted for the first half of 2027 from Thredd and Bakkt. This milestone will help further the planned stablecoin-settled credit card program. But there are a number of factors that determine the timing. These cover product readiness, client go live dates, bank requirements, network requirements and applicable approvals.
Thus, the partnership represents a planned development initiative, not a launched product. Both companies will have to meet relevant operational and regulatory requirements before the program can move forward. The partnership ultimately aims to bridge modern card processing, stablecoin settlement and consumer credit. The partnership harnesses the strengths of both Bakkt and Thredd to enable a new paradigm for U.S. credit card services.
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News Source: Businesswire.com
