Traditional Banks Now Racing To Acquire Crypto Firms—Here's Why They Can't Wait

The cryptocurrency industry has just experienced its most transformative year on record, with dealmakers striking agreements worth an eye-watering $8.6 billion in 2025, according to analysis by the Financial Times. This unprecedented surge in mergers and acquisitions tells a story not merely about market confidence, but about a seismic shift in how governments—particularly the United States—now view digital assets.

What was once a marginal, politically contentious sector has become a mainstream priority, attracting traditional financial institutions that previously steered clear of the space entirely.

The catalyst is unmistakable. When President Donald Trump's administration took office, it made crypto a national priority in ways that few anticipated. Friendly regulators were appointed. High-profile lawsuits against digital asset companies were dropped. A national crypto reserve was launched.

These weren't symbolic gestures—they were policy signals that Washington had fundamentally changed its relationship with the industry. The dealmaking that followed has been nothing short of explosive.

'It's been the busiest year for us in crypto deals by a mile,' said Charles Kerrigan, partner at law firm CMS, capturing the scale of activity with striking simplicity.

Across the industry, 267 deals were concluded in 2025, representing an 18 per cent rise compared with 2024. But the real story lies in the numbers: $8.6 billion worth of transactions, nearly four times the $2.17 billion struck just twelve months earlier.

The Biggest Crypto Deals: A Watershed Moment for the Sector

The dealmaking landscape of 2025 was dominated by headline-grabbing acquisitions that would have seemed unthinkable just years ago. Coinbase, the US crypto exchange that has become the industry's most legitimate listed entity, made the boldest move when it acquired Deribit, a derivatives trading venue, for $2.9 billion.

This represented the cryptocurrency sector's largest-ever acquisition—a watershed moment signalling that consolidation among established players is now inevitable.

Other major transactions underscore the trend. Kraken, the crypto exchange founded in the depths of the 2014 bear market, spent $1.5 billion acquiring NinjaTrader, a US retail futures trading platform, demonstrating how crypto companies are now looking beyond their traditional remit to expand into adjacent markets.

Ripple, the payments firm backed by venture capital titans, spent $1.25 billion acquiring Hidden Road, a crypto prime broker, further illustrating how quickly capital is flowing through the sector.

The momentum extended beyond acquisitions. Multiple crypto companies launched initial public offerings this year, capitalising on voracious investor appetite for digital asset exposure. The Winklevoss twins' exchange Gemini, stablecoin issuer Circle, and Peter Thiel-backed venue Bullish all pursued listings.

The results were stunning: $14.6 billion was raised from 11 crypto IPOs worldwide, dwarfing the $310 million raised from just four listings in 2024.

Why Crypto M&A is Only Getting Started

What's particularly striking is that this dealmaking surge occurred despite crypto's assets stumbling toward year-end. Bitcoin, which had soared to nearly $126,000 per token in early October, had retreated to around $90,000 by December. Yet this $36,000 decline has barely dented dealmakers' enthusiasm.

'We're in the midst of lots of transactions and the move from $120,000 to $90,000 has done nothing to derail those conversations,' said Eric Risley, founder of crypto advisory firm Architect Partners.

This resilience speaks to a fundamental truth: dealmakers are no longer betting on short-term price movements. They're investing in market infrastructure and regulatory positioning.

According to reporting by the Financial Times, a crucial driver of 2025's acquisition activity was the purchase of companies for their licences—credentials demonstrating compliance with regional rules like the European Union's 2023 Markets in Crypto-Assets Regulation.

Diego Ballon Ossio, partner at Clifford Chance, explained the shifting priorities. 'Traditional financial players realise this asset class is here to stay and they need to get their business into that space, so they just need to acquire,' Ossio observed.

This represents a profound shift. Investment banks, insurers, and asset managers that viewed crypto as a fringe phenomenon are now actively acquiring their way into the sector, recognising that regulatory compliance—not speculative fervour—is the bottleneck to entry.

Stablecoins have emerged as a particular focus for acquisition and investment activity. These digital currencies, pegged to the US dollar or other fiat assets, burst into the mainstream consciousness in 2025 and are expected to remain a dealmaking hotspot into 2026.

Landmark US rules overseeing stablecoins are set to come into force, alongside new regulations in the United Kingdom, creating both compliance obligations and commercial opportunities.

'There will be huge waves of investing,' Kerrigan predicted, 'and next year companies will have to spend a lot of money to remain compliant with the new licensing regimes'—including, crucially, through acquisitions.

In other words, the dealmaking wave of 2025 may only be the opening chapter of a much longer story. Companies that fail to consolidate their positions or acquire regulatory credentials are likely to find themselves at a competitive disadvantage as the sector matures and traditional finance moves in.