Young predicts that the blockchain and crypto sector will see a significant increase in acquisitions in the coming year.
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A Ripple executive expects that crypto acquisitions in 2023 will further boost the industry in the wake of incidents like the FTX collapse.
According to a senior executive at Ripple, there will be more consolidation in the crypto sector in 2023 as stronger companies acquire more blockchain and crypto companies.
Sendi Young, managing director for Europe at Ripple, posted on Twitter on January 9 to share a set of industry predictions for 2023, showing optimism about crypto in the coming years.
Young predicts that the blockchain and crypto sector will see a significant increase in acquisitions in the coming year, assisting these companies and startups to fill gaps in their capabilities. After setbacks like the FTX collapse and other problems faced by companies like Celcius, Voyager, Three Arrows Capital, and some others, the industry will be improved even further as a result of the acquisitions, the Ripple executive said.
Furthermore, Young predicted that in 2023, traditional financial (TradFi) companies and other well-established companies will acquire more crypto and blockchain companies.
Young's forecasts about the status of crypto acquisitions in 2023 arise as traditional finance giants express growing interest in acquiring subsidiaries of the now-defunct crypto exchange FTX. According to a court filing from January 8, as many as 117 financial and strategic counterparties have shown interest in purchasing one or more of FTX's branches, including FTX Japan, FTX Europe, LedgerX, and Embed.
In late December, Mike Novogratz's Galaxy Digital paid $65 million for Argo Blockchain's flagship mining facility, Helios. As Galaxy seeks to extend its exposure to the Bitcoin mining industry, Novogratz says that the Helios mining deal was a game-changing acquisition for the firm.
Young predicts that fiat-backed stablecoins will become increasingly popular in 2023 as institutions recognize the potential of blockchain for real-time merchant settlement.
The executive also forecast that central bank digital currencies will "come of age" at this time, noting that the FTX collapse has increased the haste with which countries must create a "dependable digital settlement asset as a secure alternative to other crypto solutions."
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