Crypto ( CRCW ) infrastructure company Bakkt ( BKKT/WS ) is pushing deeper into the stablecoin payments market by agreeing to acquire Distributed Technologies Research (DTR), a global provider of blockchain-based payment infrastructure.

The move is part of Bakkt’s broader strategy to support stablecoin settlement and programmable payments, the company said on Monday.

To complete the deal, Bakkt ( BKKT/WS ) will issue roughly 9.1 million shares of its Class A common stock, equal to around 31.5% of the company’s current share count. The final number of shares could shift ahead of closing, which is contingent on shareholder and regulatory approvals.

DTR’s CEO, Akshay Naheta, will take the helm at Bakkt ( BKKT/WS ) following the merger. Naheta previously led investment efforts at SoftBank before founding DTR. Intercontinental Exchange ( ICE ), Bakkt's ( BKKT/WS ) largest shareholder, has agreed to vote in favor of the deal.

BKKT shares surged 17% following the news to over $19, a two-month high. At current prices, the deal would be worth around $168 million. A Bakkt ( BKKT/WS ) spokesperson said "nothing has been paid or agreed upon as [the acquisition] has not closed," adding that the final number of shares issued may change prior to closing.

DTR’s platform supports programmable digital payments, including cross-border transactions using stablecoins. Stablecoins are a rapidly growing sector within digital assets that aim to offer faster and cheaper global payments alternative using blockchain rails for settlement.

By bringing the infrastructure in-house, Bakkt ( BKKT/WS ) said it expects to reduce its reliance on third-party vendors and speed up the launch of new services. Bakkt ( BKKT/WS ) said it also plans to debut neobanking offerings later this year with multiple distribution partners.

"The acquisition will allow Bakkt to consolidate a critical piece of its stablecoin settlement infrastructure and prepares the company to launch its neobanking strategy with multiple distribution partners in the coming months," Mike Alfred, Director and member of the Special Committee at Bakkt ( BKKT/WS ), said in a statement.

UPDATE (Jan. 12, 18:22 UTC): Adds comment from Bakkt ( BKKT/WS ) spokesperson.