The cryptocurrency industry will see further consolidation in 2023 as more crypto and blockchain companies are acquired by saner companies, according to a senior Ripple executive.
Sendi Young, Ripple’s CEO for Europe, took to Twitter on Jan. 9 to to share a series of industry predictions for 2023, expressing confidence in the crypto sector in the near future.
According to Young’s forecast, The coming year will bring many acquisitions in the blockchain and cryptocurrency industry, which will help these companies and startups fill the gaps in their capabilities.. The acquisitions will further strengthen the industry following casualties such as the FTX collapse, as well as other problems experienced by companies such as Celcius, Voyager, Three Arrows Capital and others, the Ripple executive noted.
Young also predicted that cryptocurrency and blockchain companies will increasingly be acquired by traditional financial firms (TradFi) and other established companies by 2023.
Young’s predictions about the state of cryptocurrency acquisitions in 2023 come amid growing interest from traditional financial giants to buy subsidiaries of the defunct cryptocurrency exchange FTX. As many as 117 financial and strategic counterparties have expressed their willingness to buy one or more of FTX’s subsidiaries such as FTX Japan, FTX Europe, LedgerX and Embed, according to court filings dated 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 company works to increase its exposure to the Bitcoin (BTC) mining sector.
Among other predictions, Young also predicted further adoption of fiat-backed stablecoins to follow in 2023 as institutions realize the advantages of blockchain for real-time trade settlement.
At the same time, central bank digital currencies will also “come of age,” the executive predicted, adding that the FTX collapse has further triggered the need for nations to establish a “reliable digital settlement asset as an alternative secure to other crypto solutions”.
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