NYSE-listed Bakkt has selected card issuer processing platform Thredd to support its planned credit card-as-a-service program, aiming to extend stablecoin settlement infrastructure into consumer credit and everyday payments.
Under the agreement, Thredd will provide card processing and integrated credit infrastructure, enabling Bakkt to connect its settlement technology with credit products issued by partner banks. The companies are developing the program to bridge digital asset infrastructure and traditional consumer payment services.
The partnership aims to combine Bakkt’s stablecoin settlement capabilities with Thredd’s card processing and credit technology, allowing Bakkt to offer consumer credit products through regulated banking partners.
Thredd will also provide tokenization, digital wallet integration, fraud prevention, risk management, and loyalty services tailored to the program. According to the companies, Bakkt selected the platform because its unified technology stack reduces the need to establish and maintain separate connections between credit systems and payment infrastructure.
The two companies are designing the service around Bakkt’s requirements rather than adapting the project to a conventional card processing framework. The approach is intended to simplify the integration of payment processing, lending capabilities and digital asset settlement.
Jim McCarthy, chief executive officer of Thredd, explained that credit cards settling in stablecoins require close coordination among card processing, credit infrastructure and digital asset systems. He said the integrated approach was designed to reduce operational complexity and help Bakkt deliver a more direct payment product to its clients.
Stablecoin Settlement Expands Into Everyday Spending
Bakkt has positioned its infrastructure to support the growing AI and token economy, facilitating value transfers for institutional customers and cross-border transactions. The planned card program would extend these capabilities into consumer spending, connecting stablecoin settlement with familiar credit card services.
Ankit Khemka, chief product officer at Bakkt, said Thredd’s technology offered a single integration for capabilities that would typically require multiple separate connections. He also indicated that Bakkt sees potential for stablecoin settlement to reshape consumer credit economics, building on changes already taking place in cross-border payments.
Stablecoins are digital assets designed to maintain a relatively stable value, commonly through a peg to a currency such as the US dollar. Their use in settlement can provide an alternative infrastructure for transferring value, although the overall benefits depend on transaction costs, liquidity, regulatory requirements and the design of the payment system.
By linking this settlement model with card processing and credit infrastructure, the proposed service could provide a route for digital asset technology to support conventional consumer financial products. However, the companies have not disclosed specific cardholder benefits, pricing arrangements, interest rates, or the detailed mechanics of how stablecoin settlement will operate within the credit card program.
Partner Banks Will Issue the Credit Products
The proposed arrangement divides responsibilities among three participants. Partner banks will issue the credit products, Thredd will manage card processing and integrated credit infrastructure, and Bakkt will provide the stablecoin settlement layer.
This structure allows Bakkt to participate in consumer credit payments without directly replacing the regulated financial institutions responsible for issuing the cards. It also gives the companies a framework for connecting existing banking and card networks with digital asset settlement technology.
The layered model combines bank-led credit issuance, Thredd’s payment processing capabilities, and Bakkt’s settlement infrastructure, potentially reducing the technical barriers to introducing stablecoin-based payment products.
The initiative reflects a broader effort to connect digital asset infrastructure with established financial services. For Bakkt, consumer credit represents a potential expansion beyond institutional and cross-border settlement activity, while Thredd would supply the processing technology required to support the program.
Proof of Concept Targeted for 2027
The companies are targeting an initial proof of concept in the first half of 2027. The project remains subject to product readiness, customer launch schedules, bank and payment network requirements, and applicable regulatory and other approvals.
The timeline represents an initial testing milestone rather than a confirmed commercial launch date. Neither company has announced when the service will become broadly available or provided a detailed schedule for subsequent deployment.
If successfully implemented, the program could establish a new connection between stablecoin settlement infrastructure and bank-issued consumer credit, although its commercial rollout will depend on technical development and the required approvals.
