Bakkt reported a sharp decline in Q1 revenue, falling a double-digit percentage year-over-year due to lower crypto trading volumes and subdued institutional demand. The drop underscores the need for revenue diversification as market volatility impacts transactional income.

To counter declining revenue, Bakkt will integrate USDC and BUSD stablecoin payment options into its merchant platform, enabling businesses to accept stablecoins for goods and services. The move includes partnerships with major stablecoin issuers to streamline on-ramps and settlements.

By adding stablecoin payments, Bakkt aims to boost transaction volume, enhance fee income and broaden its addressable market beyond pure crypto trading. The pivot could improve revenue stability and position the company for growth as digital asset adoption expands.