Thredd and Bakkt Partner to Launch Stablecoin-Settled Credit Card-as-a-Service in the US

Thredd and Bakkt have entered a strategic partnership to launch a credit card-as-a-service program in the United States that settles in stablecoins. This move signals a significant bridge between traditional consumer credit and the token economy, offering fintechs a regulated pathway to integrate digital asset settlement into everyday spending products without traditional processing friction.

What was announced

The partnership combines Thredd’s AI-first issuer processing platform with Bakkt’s regulated infrastructure for digital asset trading and settlement. Specifically, Thredd will provide the core card processing and integrated credit infrastructure required to extend Bakkt’s existing settlement rails into consumer credit products. These products will be issued by partner banks through a planned credit card-as-a-service (CCaaS) model, allowing non-bank entities to offer branded credit solutions without building the underlying financial stack.

Beyond basic processing, Thredd is tasked with delivering a suite of auxiliary services including tokenization, digital wallet integration, and fraud and risk management tailored specifically for this program. The two companies are engineering the program around Bakkt’s specific requirements for the AI and token economy, rather than attempting to force these new asset classes into a rigid, traditional processing model. By using a unified technology stack, the companies aim to eliminate the need for multiple, complex connections between payment components and end-consumer credit.

The primary objective is to enable consumer credit spend to settle via stablecoins, mirroring the efficiencies seen in cross-border payments. While the infrastructure is being engineered now, the timeline for the initiative is long-term; an initial proof of concept is currently targeted for the first half of 2027. The final rollout remains subject to product readiness, client launch timing, bank and network requirements, and necessary regulatory approvals.

"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,"

Ankit Khemka, Chief Product Officer at Bakkt.

The companies involved

Thredd is an AI-first issuer processing platform that has established a significant footprint in the fintech ecosystem, with FF News tracking over 60 major developments from the firm. The company specializes in providing the underlying technology that allows fintechs and banks to launch and manage card programs globally. Its focus on modernizing the "engine room" of payments has made it a frequent partner for firms looking to move away from legacy banking stacks. Thredd’s platform is designed to handle the complexities of modern card issuance, from authorization to clearing, while integrating advanced features like real-time fraud detection.

Bakkt, Inc. (NYSE: BKKT) operates as a regulated provider of infrastructure for the emerging token economy. The company provides the rails for institutional trading, stablecoin settlement, and cross-border payments. Originally launched with a heavy focus on cryptocurrency custody and consumer rewards, Bakkt has evolved into a business-to-business provider that enables institutions to move value across borders on demand. The company occupies a specific niche in the market by maintaining regulated status while facilitating the movement of digital assets, positioning itself as a bridge between the high-compliance world of traditional finance and the high-speed world of blockchain-based settlement. Its infrastructure is built to support the AI and token economy, focusing on secure, regulated value movement.

What FF News has reported before

FF News has extensively covered Thredd’s expansion into both AI-driven credit and stablecoin-based financial services. In late 2026, the processor collaborated with BankPro to launch premium AI-powered card infrastructure for high-net-worth clients. This followed a pivotal move into the digital asset space when Thredd and Velocity partnered to launch stablecoin-powered B2B money movement. Additionally, the firm has strengthened its global reach through a landmark agreement to enable Visa Cloud Connect globally and by powering iPayLinks’ Mastercard virtual commercial card programme. These previous reports highlight a consistent strategy of integrating blockchain settlement with traditional card networks.

What this means

This partnership represents a fundamental shift in how the industry views the utility of stablecoins. By moving beyond B2B settlement and into the consumer credit space, Thredd and Bakkt are challenging the traditional economics of the credit card interchange and settlement cycle. For the broader fintech sector, this puts pressure on legacy processors who remain tethered to T+2 settlement windows and fiat-only systems. The long lead time for the proof of concept suggests that regulatory and banking hurdles remain substantial, but the move validates the thesis that stablecoins are becoming the preferred "back-end" for modern financial products that require instantaneous, global settlement.