The competition to secure blockchain infrastructure is rapidly intensifying, as highlighted by U.S. bank Citizens.
Citizens projects an increase in the speed of mergers and acquisitions in the realm of digital assets according to their latest research report.
The analysts pointed out that due to the intricate nature of the digital-asset sector, talent shortages, and rigorous compliance requirements, acquisitions are the most viable strategy for established companies. Meanwhile, digital-native firms enhance their scale, reach, and regulatory standing by aligning with larger financial entities.
Reports indicate that Mastercard (MA) is in advanced negotiations to acquire ZeroHash for up to $2 billion, while Coinbase (COIN) is close to a similar deal for London-based BVNK, underscoring how both traditional and crypto-native companies are proactively enhancing their digital-asset capabilities.
These strategies reflect a broader trend as firms increasingly prefer to make acquisitions rather than build in-house, aiming to enhance their cryptocurrency services, as noted by analysts led by Devin Ryan.
The growing regulatory framework in the U.S. is also propelling this rush. With the establishment of the GENIUS Act, which outlines stablecoin regulations, alongside the anticipated CLARITY Act focusing on market structure, Citizens remarked that the political landscape has shifted from “hostile” to more supportive. This transition is expediting the integration of blockchain infrastructure among banks, payment processors, and asset managers.
The report highlights that tokenization is a significant driver of this trend. The bank estimates that the market could generate nearly $100 billion in annual revenue by 2030 through services like trading, custody, and data management, as stablecoins and tokenized assets make their way into mainstream finance.
Stablecoin market capitalization has already grown to about $315 billion, up from $250 billion earlier in the year, and it is projected to surpass $1 trillion, according to analysts. Companies are feeling the pressure to remain competitive as legacy systems face disruptions from faster and cost-effective blockchain technologies.
Citizens notes that early participants with reliable brands and extensive customer bases are likely to reap the most benefits, even if they need to modify their business strategies ahead of full market demand.
With a clearer regulatory outlook, increasing customer interest, and rising costs of inaction, the bank anticipates a surge in M&A activity, signifying the commencement of a consolidation phase that will shape the evolution of the digital-asset landscape.
Read more: Citizens Sees Ether Primed for $10K as Supply Tightens and Institutional Demand Surges
