Ripple Exec Expects More Crypto Acquisitions by TradFi in 2023

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According to a senior Ripple executive, the cryptocurrency industry will see increased consolidation in 2023 as healthier companies acquire more crypto and blockchain companies.

Sendi Young, Managing Director of Ripples for Europe, took to Twitter on January 9 to share a set of industry predictions for 2023, expressing his confidence in crypto for the near future.

According to Young’s forecast, the coming year will bring many acquisitions in the blockchain and crypto industry, which will help these companies and startups fill the gaps in their capabilities. The acquisitions will further strengthen the industry following losses such as the collapse of FTX as well as other issues faced by companies like Celcius, Voyager, Three Arrows Capital and others, the Ripple executive noted.

Young also predicted that cryptocurrency and blockchain businesses will increasingly be acquired by traditional financial firms (TradFi) and other established companies in 2023.

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Young’s predictions for the state of crypto acquisitions in 2023 come amid growing interest from traditional finance giants in buying subsidiaries of now-defunct crypto exchange FTX. As many as 117 financial and strategic counterparties have expressed their willingness to buy one or more of FTX’s branches like FTX Japan, FTX Europe, LedgerX, and Embed, according to a January 8 court filing.

The cryptocurrency industry has seen some major acquisitions recently, with Mike Novogratz’s Galaxy Digital acquisition of Argo Blockchains’ flagship mining facility, Helios, for $65 million in late December. According to Novogratz, the Helios mining deal has been a transformative acquisition for Galaxy as the company strives to increase its exposure to the Bitcoin (BTC) mining sector.

Related: Voyager Tells Court Binance Acquisition Plan Is Good Business Judgment, Urgently Needed

Among other predictions, Young also predicted that 2023 will see greater adoption of fiat-backed stablecoins as institutions realize the benefits of blockchain for real-time merchant settlement.

At the same time, central bank digital currencies will also reach maturity, the executive predicted, adding that the collapse of FTX has further triggered the need for nations to establish a reliable digital settlement asset as a secure alternative. to other cryptographic solutions.

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