Crypto M&A Heats Up as Big Banks and Fintechs Race to Scale: Citizens

The race to acquire blockchain infrastructure is picking up speed, according to U.S. bank Citizens.

Citizens said it expects the pace of mergers and acquisitions across digital assets to accelerate from here in a new research report.

The analysts noted that the digital-asset industry’s technical complexity, talent shortages, and stringent compliance demands make acquisitions the most practical path for incumbents. Meanwhile, digital-native companies gain scale, customer reach, and regulatory credibility by joining larger financial networks.

Mastercard (MA) is in advanced talks to buy ZeroHash for as much as $2 billion and that Coinbase (COIN) is nearing a similar-sized deal for London-based BVNK, according to reports, highlighting how traditional and crypto-native firms alike are moving aggressively to secure digital-asset capabilities.

These moves echo a broader shift in strategy as firms increasingly opt to buy rather than build in order to expand their crypto services, analysts led by Devin Ryan wrote.

Regulatory momentum in the U.S. is also fueling the rush. With the passage of the GENIUS Act, which sets out stablecoin rules, and the expected CLARITY Act on market structure, Citizens said the political and policy environment has turned from “hostile” to supportive. That shift is accelerating adoption as banks, payment processors, and asset managers seek to integrate blockchain infrastructure.

Tokenization is becoming a key driver of this activity, the report said. The bank projects the market could generate nearly $100 billion in annual revenue by 2030 from services like trading, custody, and data, as stablecoins and tokenized assets move into mainstream finance.

Stablecoin capitalization has already climbed to about $315 billion, up from $250 billion in midyear, and is on track to surpass $1 trillion, the analysts noted. Competition is intensifying as firms scramble to stay relevant while legacy systems risk being disintermediated by faster, cheaper blockchain rails.

Citizens said early movers with trusted brands and customer reach stand to benefit most, even if they must adapt their business models ahead of full market demand.

With the regulatory picture clearing, customer appetite rising, and the cost of inaction increasing, the bank expects the M&A wave to build, marking the start of a consolidation cycle that will define the next phase of the digital-asset economy.

Read more: Citizens Sees Ether Primed for $10K as Supply Tightens and Institutional Demand Surges