A Record-Breaking Year for Crypto Dealmakers
The crypto industry is experiencing a historic wave of consolidation, with mergers and acquisitions surging 30-fold compared to last year, according to new data from Galaxy Digital and PitchBook. The dealmaking frenzy marks the most aggressive M&A cycle in the digital asset sector’s short history, as blockchain-native firms and institutional investors converge to build the next generation of financial infrastructure.
“The crypto market has matured faster in the past 12 months than in the previous five years combined,” said Alex Thorn, head of research at Galaxy Digital. “We’re seeing traditional finance players aggressively move in – and crypto-native firms scaling through acquisitions instead of organic growth.”
From Survival Mode to Expansion Mode
After a brutal downturn in 2022–2023, when collapsing valuations and bankruptcies froze deal activity, the landscape has flipped. In the first three quarters of 2025 alone, crypto-related M&A deals exceeded $18 billion, up from just $600 million a year earlier.
The surge reflects both renewed institutional confidence and a strategic pivot by firms seeking regulatory clarity and cross-border licensing. “Companies that survived the last bear market are now the acquirers,” said Rachel Cheung, a fintech analyst at Bernstein. “They’re buying distressed or specialized startups that can help them scale mainstream products – payments, custody, and compliance tools.”
Institutional Buyers Dominate the Market
Traditional financial players are increasingly driving this boom. Visa, Standard Chartered, and BlackRock have all taken stakes in blockchain infrastructure companies in recent months. Meanwhile, crypto-native giants such as Coinbase, Ripple, and Binance have been quietly acquiring startups in AI-driven analytics, tokenization platforms, and cross-chain settlement tools.
“The M&A narrative has changed,” Cheung explained. “It’s not about speculation anymore, it’s about infrastructure, interoperability, and enterprise-grade systems.”
Analysts say the bulk of dealmaking is happening across three core areas:
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Blockchain infrastructure and custody – Firms are buying up secure wallet and compliance tech providers.
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Tokenized asset platforms – Bridging real-world assets like real estate, equities, and commodities onto blockchain.
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Regtech and compliance software – A hot category as governments move to license digital asset firms under new frameworks.
North America and Asia Lead the Charge
Geographically, the U.S. and Singapore remain the dominant hubs for crypto dealmaking, while Hong Kong, Dubai, and London are rapidly emerging as centers for Web3 financing.
In Asia, Temasek and SoftBank have resumed selective investments in blockchain infrastructure after scaling back exposure in 2023. “Regulators are now providing clearer frameworks,” said Kenji Saito, director at the Tokyo Crypto Forum. “That’s giving both investors and founders the confidence to build again.”
The U.S., meanwhile, remains the top destination for crypto acquisitions by volume, accounting for 42% of global deal value, even amid tighter scrutiny from the Securities and Exchange Commission.
AI and Crypto: The New Convergence Frontier
One of the most striking trends in the current cycle is the rise of AI-driven acquisitions. Crypto companies are buying AI startups to integrate intelligent trading, fraud detection, and automated compliance tools.
“AI is the connective tissue between crypto and mainstream finance,” said Thorn. “The firms combining both technologies will define the next decade of financial innovation.”
Recent acquisitions include Ripple’s purchase of an AI risk-monitoring firm and Coinbase’s acquisition of an algorithmic liquidity optimizer aimed at improving DeFi trading efficiency.
Regulation as the Catalyst, Not the Constraint
In contrast to previous cycles, tighter global regulations are now fueling, not hindering, crypto consolidation. The Markets in Crypto-Assets (MiCA) framework in the EU and licensing programs in Singapore, Dubai, and Hong Kong have provided a clearer path for compliant operators.
“Regulation is the key to legitimacy,” said Edward Grant, managing partner at crypto M&A advisory firm Pantera Capital. “It’s unlocking traditional capital that was sitting on the sidelines for years.”
With major banks like HSBC and Santander exploring tokenized deposits, mergers are increasingly focused on synergies between old and new finance, merging banking compliance with blockchain scalability.
Retail Platforms and Payments in Focus
Retail-facing crypto companies are also back in play. Payment and on-ramp platforms are being snapped up by both crypto and fintech firms eager to simplify consumer access.
Last month, Revolut announced its acquisition of MoonGate, a startup enabling fiat-to-crypto payments in 150 countries. Similarly, PayPal is reportedly exploring multiple acquisitions in the stablecoin payments and wallet-as-a-service space.
“Crypto payments are no longer niche,” Grant said. “They’re quietly becoming the backbone of cross-border commerce.”
Market Analysts See Strategic Consolidation Continuing
While the pace of dealmaking may normalize next year, analysts believe the underlying momentum will continue.
“Crypto M&A is entering its institutional era,” Cheung said. “We’re not seeing meme coins, we’re seeing mergers between billion-dollar infrastructure firms and compliance providers. This is what mainstream adoption looks like.”
Galaxy Digital forecasts another $25–30 billion in deal volume through 2026, as stablecoin issuers, exchanges, and digital banks race to acquire technology that ensures security, regulation, and scalability.
The Bottom Line
The 30-fold surge in crypto M&A is more than a market rebound, it’s a structural shift. What began as a fragmented industry of niche players is now consolidating into a connected ecosystem that financial institutions can trust.
For the first time, crypto isn’t chasing legitimacy, it’s buying it.
