The cryptocurrency industry will see increased consolidation in 2023 as healthier companies acquire more crypto and blockchain companies, 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.
According to Young’s forecast, the coming year will bring many acquisitions in the blockchain and crypto industry, which will help such companies and startups fill the gaps in their capabilities. The acquisitions will further strengthen the industry in the aftermath of casualties like the FTX collapse as well as other issues experienced by firms like Celcius, Voyager, Three Arrows Capital and others, the Ripple exec noted.
Young also predicted that cryptocurrency and blockchain firms will be increasingly acquired by traditional financial (TradFi) companies and other established companies in 2023.
Young’s predictions about the state of crypto acquisitions in 2023 come amid the increasing interest by traditional finance 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 like FTX Japan, FTX Europe, LedgerX and Embed, according to a court filing from Jan. 8.
The cryptocurrency industry has seen some major acquisitions recently, with Mike Novogratz’s Galaxy Digital acquiring Argo Blockchain’s flagship mining facility Helios for $65 million in late December. According to Novogratz, the Helios mining deal was a transformative acquisition for Galaxy as the firm works to increase its exposure to the Bitcoin (BTC) mining sector.
Related: Voyager tells court Binance acquisition plan is ‘sound business judgment,’ urgently needed
Among other predictions, Young also forecasted 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 “come of age,” the exec predicted, adding that the FTX collapse has further triggered the need for nations to establish a “dependable digital settlement asset as a secure alternative to other crypto solutions.”
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