2025 was a year many investors expected to deliver strong market growth, yet the outcome ended up being disappointing for most participants. Even so, billions of dollars were still injected into the crypto market through acquisitions and mergers over the past year, an amount roughly four times higher than in 2024.
While this capital was primarily deployed through M&A and did not directly push token prices higher, it revealed an important signal. Smart money continues to quietly bet on crypto infrastructure and the long-term future of the industry.
1. Institutions Spent 8.6 Billion USD, So Why Did Token Prices Not Rise?
According to PitchBook, institutions spent 8.6 billion USD across 267 mergers and acquisitions in 2025. Data from Architect Partners, an investment bank specializing in M&A, suggests the figure may have reached as high as 12.9 billion USD.
This highlights a clear reality. A significant portion of capital flowing into crypto was used to acquire companies rather than to buy tokens directly. Many weaker projects were unable to survive such a harsh cycle. Without sustainable revenue for extended periods, they were forced to shut down or accept acquisition by stronger players.
This dynamic is reminiscent of the 2008 financial crisis, when even giants like Lehman Brothers collapsed and were absorbed by those who understood the rules of the game. After the crisis, strong players became stronger, and industry concentration increased significantly.
At first glance, this may seem negative as power consolidates among a small number of major players. However, the positive side is that strong ideas end up in the hands of organizations with sufficient resources to scale them effectively. Ultimately, users and crypto investors benefit from higher-quality products that are actually built and sustained.
2. Major M&A Deals in 2025
Several large and notable acquisitions took place in 2025.
Coinbase and the Ambition to Become an Everything Exchange
On May 8, 2025, Coinbase surprised the market by announcing a 2.9 billion USD acquisition of Deribit, the world’s largest crypto options trading platform.
This record-breaking deal delivered two major advantages to Coinbase.
First is positioning. With Deribit processing roughly 1 trillion USD in trading volume in 2024 and maintaining open interest consistently above 30 billion USD, the acquisition instantly placed Coinbase among the top players in crypto options derivatives.
Second is market access. While Deribit remains relatively unfamiliar to retail users, it is widely used by institutional participants such as market makers, investment firms, and hedge funds. By acquiring Deribit, Coinbase gained the ability to offer crypto options products directly to Wall Street institutions.
In addition, CEO Brian Armstrong stated that Coinbase has continued pursuing further acquisitions, including platforms such as Spindl for on-chain advertising and Vector.fun for memecoins. The objective is clear: transform Coinbase into an Everything Exchange, a single platform where users can trade and interact with virtually all financial products.
Ripple Acquires Hidden Road and GTreasury
After securing a decisive victory against the U.S. Securities and Exchange Commission following a five-year legal battle, Ripple spent a total of 2.7 billion USD on a series of high-profile acquisitions.
Two deals stood out.
The first was the 1.25 billion USD acquisition of Hidden Road, a leading global prime brokerage providing clearing, margin lending, and custody services for hedge funds. After the acquisition, Ripple rebranded the company as Ripple Prime, formally entering territory traditionally dominated by investment banks.
The second was the 1 billion USD acquisition of GTreasury, a capital management platform used by Fortune 500 companies such as American Airlines and Volvo. GTreasury processes approximately 12.5 trillion USD in cash flows annually.
Through these acquisitions, Ripple is signaling its ambition to build a comprehensive financial infrastructure capable of competing with the inefficiencies of traditional financial systems.
Stripe Acquires Bridge
Stripe, a global online payments provider, acquired the stablecoin platform Bridge for 1.1 billion USD. Notably, this valuation was reportedly 5.5 times higher than Bridge’s previous 200 million USD valuation.
The acquisition allowed Stripe to compress its product development timeline from roughly two years to just one month, enabling immediate participation in the rapidly expanding stablecoin market seen in late 2025.
On November 25, 2025, Stripe further demonstrated its commitment to crypto payments by partnering with Klarna to launch its first stablecoin product, KlarnaUSD, using Bridge’s technology. Stripe also partnered with Paradigm to launch a stablecoin-focused blockchain called Tempo, designed specifically for stablecoin payments.
Kraken Acquires NinjaTrader
Not to be outdone by Coinbase, Kraken, another long-standing US-based crypto exchange, spent 1.5 billion USD to acquire NinjaTrader.
NinjaTrader is a 20-year-old derivatives trading platform in the United States and holds a Futures Commission Merchant license from the Commodity Futures Trading Commission. This acquisition allowed Kraken to instantly obtain regulatory approval for derivatives trading instead of waiting up to three years through the traditional licensing process, which also carries a high risk of rejection.
Many observers believe this move was also intended to strengthen Kraken’s profile ahead of a potential IPO in Q1 2026. As a fully licensed multi-asset trading platform, Kraken is widely expected to target a valuation of up to 20 billion USD upon listing on US public markets.
3. Why Did the M&A Market Explode in 2025?
SEC Leadership Change
One of the most significant catalysts came from regulatory shifts in the United States. Gary Gensler, widely regarded as one of crypto’s toughest regulators, resigned as Chair of the SEC on January 20, 2025, the same day Donald Trump was inaugurated as President.
Under Acting Chair Mark Uyeda, the SEC shifted away from regulation by enforcement toward a dialogue-based approach. As a result, several high-profile crypto-related lawsuits were dropped, including cases involving Ripple, Binance, and Coinbase.
In some instances, cases were dismissed with prejudice, meaning they could not be refiled. This provided institutional investors with a much higher degree of confidence when allocating capital to crypto-related businesses.
The GENIUS Act
The GENIUS Act, signed into law on July 18, 2025, removed stablecoins from overlapping regulatory oversight by both the SEC and the CFTC.
Combined with banking licenses issued by the Office of the Comptroller of the Currency, this legislation gave banks and payment companies greater confidence to launch stablecoin services. This regulatory clarity helps explain the rapid expansion of the stablecoin sector observed in mid to late 2025.
OCC Banking Licenses
According to Forbes, on December 13, 2025, the OCC granted national trust bank charters focused on digital assets to major firms including BitGo, Circle, Ripple, Paxos, and Fidelity Digital Assets.
These licenses allow crypto companies to directly access the Federal Reserve’s payment systems and offer custody and settlement services on par with traditional banks, without relying on intermediaries.
4. Outlook for 2026
Looking back at 2025, it is clear that traditional capital is increasingly interested in crypto. However, instead of buying tokens in hopes of price appreciation, institutions are investing in infrastructure, licenses, revenue streams, and user bases. In other words, they are buying the components that can turn crypto into a legitimate financial industry.
As a result, 2026 may mark the emergence of a very different crypto market compared to previous cycles. There may be less FOMO, but significantly more professionalism and a strong shift toward Wall Street-style structures.
Several positive trends are likely to continue in 2026.
Project quality is expected to improve as acquisitions allow major players to enter new niches quickly. This process helps cleanse the market by eliminating underfunded projects and leaving room for higher-quality products.
Crypto IPOs are likely to increase as regulatory conditions improve and pioneers such as Coinbase, Circle, and potentially Kraken pave the way for public listings in the United States.
The boundary between crypto companies and traditional financial firms will continue to blur. As these trends accelerate, crypto may no longer be treated as a niche industry but instead stand alongside traditional finance.
However, opposing forces will also emerge.
Institutions are buying companies, not tokens. Tens of billions of dollars flowed into acquisitions in 2025 rather than into token markets, limiting the upside potential for token prices compared to previous cycles.
Token issuance may decline. Projects planning IPOs to access traditional capital are less likely to launch tokens due to legal risk. This shift particularly impacts airdrop hunters, as more teams opt for equity and public listings instead of token launches.
Overall, institutional crypto strategy in the United States is clearly adapting to new regulations and policies. The upside is a less chaotic market with stronger products. The downside is that tokens lose their central role in attracting large capital inflows. If 2026 truly becomes US-centric for crypto, the rules of the game, especially for tokens, will change significantly.
5. Conclusion
In summary, 2026 may mark the beginning of a new phase for crypto, one defined by deep professionalization and strong US influence. Markets may become less volatile, products more systematically built, and institutional capital more abundant. However, instead of flowing directly into tokens, this capital will primarily target infrastructure, licenses, companies, and payment ecosystems.
Crypto is no longer just a speculative playground. It is evolving into an industry increasingly integrated with traditional finance. This maturity also makes the game harder for retail investors. As institutions buy companies rather than tokens and IPOs replace token sales as a legitimate fundraising path, tokens gradually lose their central role.
The explosive narrative-driven altcoin rallies that defined earlier cycles may become far less common going forward.
Disclaimer: This content does not constitute investment, tax, legal, financial, or accounting advice. MEXC provides this information for educational purposes only. Always do your own research, understand the risks, and invest responsibly.