• Ripple exec expects more crypto acquisitions in 2023
• Ripple MD Sendi Young predicts acquisitions will fill capabilities gaps in the industry
• FTX collapse and other issues experienced by firms have created an opportunity for TradFi to acquire crypto companies
The cryptocurrency industry is set to experience an increase in consolidation in 2023, according to Ripple’s managing director for Europe, Sendi Young. In a recent tweet, Young predicted that the coming year will bring many acquisitions in the blockchain and crypto industry, helping companies and startups fill the gaps in their capabilities. Young also stated that cryptocurrency and blockchain firms will be acquired by companies in the traditional finance (TradFi) sector and other established companies.
Young’s predictions come as interest from TradFi giants in buying subsidiaries of the now-defunct crypto exchange FTX continues to grow. 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 cryptocurrency industry is also seeing an increase in acquisitions as of late, with Mike Novogratz’ Galaxy Digital buying crypto custodian Vo1t and Blockchain.com reportedly acquiring crypto trading platform The PIT.
The increased consolidation in the cryptocurrency industry is expected to help the sector recover from casualties such as the FTX collapse and issues experienced by firms like Celsius, Voyager, Three Arrows Capital and others. By acquiring crypto companies, TradFi and other established companies can benefit from the growing crypto sector by utilizing the services of these firms. Additionally, the acquisitions will provide crypto companies with access to more resources and capital.
For the crypto industry to continue to grow and develop, it is essential that consolidation continues. Companies that are able to acquire crypto companies will be able to benefit from the services and expertise of these firms. Moreover, this will help the sector recover from the losses experienced in recent times and provide companies with better capabilities and resources. As such, it is likely that the cryptocurrency industry will experience increased consolidation in 2023, with many acquisitions taking place.