THE PROBLEM
Rapid growth led to a need for a bullet-proof transaction monitoring platform
Following its IPO, Bakkt has seen strong momentum behind its real-time transaction processing engine, built with the latest cloud technologies to maximize adaptability, scalability, and security. Founded in 2018 with a mission to bring trust and transparency to digital assets, Bakkt enables consumers to unlock over $1.2 trillion in value across cryptocurrencies, loyalty and rewards points, gaming assets, and merchant-stored value. The platform allows users to liquidate digital assets to trade, transfer, and pay, while merchants benefit from reduced payment acceptance costs, improved customer engagement, and expanded redemption options.
As a comprehensive digital asset platform, Bakkt supports a variety of transactions, including crypto trading, discounted gift card purchases, and loyalty point conversions. Customers can transform unused airline miles or gift cards into cash or bitcoin, creating more accessible value in everyday life. While the company primarily serves U.S.-based individuals, expansion is on the horizon as Bakkt focuses on strengthening domestic systems and processes.
One of Bakkt’s key operational challenges has been managing fraud at scale. Although the company has a strong foundation in anti-money laundering (AML), its compliance team is also responsible for fraud prevention—a function often split in other organizations. As the company scales toward a goal of 9 million customers, with the user base already at 500,000, building a robust fraud detection system has become critical. Growth for the compliance function is seen as closely tied to successfully getting fraud under control.
TLDR: Problems
- Rapid post-IPO growth created urgency for scalable fraud and AML systems.
- Compliance team was also responsible for fraud, increasing operational strain.
- Existing processes lacked the automation needed to support fast user growth.
- Managing diverse digital asset transactions added monitoring complexity.
- Anticipated growth from 500K to 9M users demanded a future-proof solution.
- Need for a proactive, unified approach to fraud detection across asset types.
WHY UNIT21
Scalable, Automated Compliance Built for Growth and Audit Readiness
To address this need, Bakkt turned to Unit21. The platform's flexibility and automation capabilities offered a much-needed solution for scaling fraud and AML processes in tandem. Unit21 is now playing a central role in helping Bakkt streamline transaction monitoring and position its compliance team for growth, supporting the company’s vision of uncovering untapped financial value for consumers across all digital asset types.
"Unit21 allows us to automatically monitor hundreds of thousands of accounts with a consistent 15% false positive rate—far better than industry norms. It’s essential for scaling our transaction monitoring, preparing for audits, and staying compliant with regulatory expectations. Without it, we’d be exposed to serious risk."
TLDR: Why Unit21
- Scalable monitoring for hundreds of thousands of customer accounts without manual review.
- Automated rule-based alerts to replace reliance on manual transaction checks.
- Exceptionally low false positive rate (~15%) compared to industry norms (90–95%).
- Streamlined audit readiness, with easy data access and documentation in one system.
- Robust case management to meet regulatory standards and avoid compliance penalties.
- Flexible platform that supports Bakkt’s complex and diverse digital asset transactions.
