• Ripple exec predicts increased crypto acquisitions in 2023, which will strengthen the industry in the wake of FTX collapse and other issues experienced by firms.
• Predicts cryptocurrency and blockchain firms will be acquired by companies in the traditional finance (TradFi) sector and other established companies in 2023.
• Mike Novogratz’s digital asset firm Galaxy Digital recently acquired Jack Dorsey-backed startup Bank Frick for $365 million.
The cryptocurrency industry is forecast to see increased consolidation in 2023, according to a senior executive at Ripple. Sendi Young, Ripple’s managing director for Europe, took to Twitter on Jan. 9 to share a set of industry predictions for 2023, expressing confidence about crypto in the near future.
Young predicted that the coming year will bring many acquisitions in the blockchain and crypto industry, which will help companies and startups fill the gaps in their capabilities. The acquisitions will further strengthen the sector in the aftermath of casualties like the FTX collapse and other issues experienced by firms like Celsius, Voyager, Three Arrows Capital and others, the Ripple exec noted.
The cryptocurrency industry has seen some major acquisitions recently, with Mike Novogratz’s digital asset firm Galaxy Digital recently acquiring the Jack Dorsey-backed startup Bank Frick for $365 million. This was followed by the news that Guggenheim Investments, the investment arm of the Guggenheim Partners financial services firm, had acquired a majority stake in the crypto asset management firm NYDIG.
Young also predicted that cryptocurrency and blockchain firms would be acquired by companies in the traditional finance (TradFi) sector and other established companies in 2023. This is in line with the increasing interest from TradFi giants in buying subsidiaries of the now-defunct crypto exchange FTX. As many as 117 financial and strategic counterparties have expressed willingness to purchase one or more of FTX’s branches, such a FTX Japan, FTX Europe, LedgerX and Embed, according to a court filing from Jan. 8.
The Ripple executive’s prediction of increased consolidation in the industry in 2023 is also in line with the recent trend of institutional investors and corporations entering the cryptocurrency market. This includes companies like PayPal, Square, and Mastercard, as well as a number of venture capital firms and hedge funds.
In the coming year, it is likely that the industry will see more acquisitions and mergers of blockchain and crypto companies by larger corporations. This could help to bring more legitimacy and stability to the industry, while also helping to spur further innovation and development. This could ultimately lead to greater adoption and mainstream acceptance of cryptocurrencies and blockchain technology.