Ripple and FTX, two leading cryptocurrency startups, told CNBC that they are looking for acquisitions as the industry seeks to drive growth by buying other companies.
Some crypto firms believe they are substantial enough and well-capitalized to spend money on acquisitions.
What happened: In an interview last week, Brett Harrison, president of cryptocurrency exchange FTX U.S., stated that the company is in "a very good spot in terms of our capital and cash" and will "look around the market for potential merger and acquisition opportunities."
Why it's Important: Harrison stated that FTX US would hunt for companies to help them acquire more users or regulatory licenses. FTX purchased the trading platform Blockfolio in 2020, which allowed them to gain more users. CNBC reported earlier this month that FTX is searching for brokerage startups to acquire to expand into stock trading.
Brad Garlinghouse, CEO of cross-border payments provider Ripple, stated that the company has a "very strong balance sheet," predicting an increase in crypto sector mergers and acquisitions.
"I think there'll be an uptick in M&A in the blockchain and crypto space. We haven't seen that yet. But I think that's likely in the future. And I certainly think as that unfolds, we would consider things like that," Garlinghouse told CNBC in an interview last week at the World Economic Forum in Davos, Switzerland.
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