PayU continues fintech growth trajectory through investment in Intercontinental Exchange’s new digital currency venture

PayU confirms its investment in Bakkt, a new venture led by Intercontinental Exchange, operator of the New York Stock Exchange. The strategic investment marks the latest investment from PayU in a fintech venture which complement its core payments and credit business lines.

As an infrastructure provider for digital assets, Bakkt is designed to serve institutional demand for trading and custodying Bitcoin due to ICE’s expertise and network of global exchanges and clearinghouses.  Other Investors seeding the investment include Boston Consulting Group, Microsoft’s venture capital arm, M12, and Pantera Capital. Bakkt is collaborating with companies like Starbucks. PayU’s strategic investment marks another step in the company’s journey to becoming a fintech and financial services global leader. Backed by tech investment giant Naspers, PayU has a $400 million track record of investing in opportunities in high growth markets which both further global innovation and give the company new capabilities to serve its clients across vertical markets. Other examples of strategic investments in businesses which fit this purpose and complement the company’s core payments and credit businesses include remittance company Remitly and cryptocurrency platform Luno.

Bakkt’s plan to make headway in the digital assets space for use cases with merchants and consumers, and in supporting liquidity for institutional trading, aligns with PayU’s heritage and core focus as a payments business. PayU is centered on extending the reach of financial services to growth markets and becoming one of the top ten payments companies in the world.

Laurent le Moal, CEO of PayU, said: “We are relentless in our search for exciting new companies with innovative value propositions, in both established and high growth markets. Investing alongside partners ranging from BCG to Pantera Capital is really exciting and we look forward to evaluating cryptocurrencies’ long-term potential together with the other shareholders.”

Fady Abdel-Nour, Global Head of Investments and M&A at PayU, added: “Cryptocurrency offers exciting opportunities as we believe we are in the very early stage of the creation of a new asset class. Digital assets have unique requirements and we believe Bakkt will provide the infrastructure needed to evolve these instruments. We are delighted to be investing in Bakkt to help push this trend forward and look forward to seeing the business reach its full potential.”

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