tl;dr
U.S. bank Citizens reports a surge in blockchain mergers and acquisitions as traditional firms and crypto companies compete to secure digital asset capabilities. Key deals include Mastercard's $2B talks with ZeroHash and Coinbase's $2B acquisition of BVNK. Regulatory shifts like the GENIUS Act and C...
**Blockchain M&A Boom Intensifies as Firms Race to Secure Digital Asset Capabilities**
The race to acquire blockchain infrastructure is accelerating, driven by the increasing complexity of digital assets, talent shortages, and stringent regulatory demands. U.S. bank Citizens has highlighted this trend in a new research report, forecasting a surge in mergers and acquisitions (M&A) as traditional financial institutions and crypto-native companies vie for dominance in the evolving digital-asset economy.
Citizens’ analysts argue that for established players, acquiring blockchain expertise is often more practical than building it from scratch. The sector’s technical complexity, coupled with a scarcity of specialized talent and the need to navigate rigorous compliance frameworks, has made M&A a strategic priority. Meanwhile, digital-native firms are leveraging partnerships with larger financial networks to scale operations, expand customer bases, and gain regulatory credibility.
Recent deals underscore this shift. Mastercard is reportedly in advanced talks to acquire ZeroHash, a blockchain infrastructure company, for up to $2 billion. Similarly, Coinbase is nearing a similar-sized deal for London-based blockchain platform BVNK. These moves reflect a broader strategy among firms to buy rather than build, enabling them to rapidly expand crypto services and stay competitive.
The U.S. regulatory landscape is also playing a pivotal role. The passage of the *GENIUS Act*, which establishes rules for stablecoins, and the anticipated *CLARITY Act* on market structure, have transformed the political environment from “hostile” to “supportive,” according to Citizens. This shift is accelerating adoption as banks, payment processors, and asset managers rush to integrate blockchain solutions.
Tokenization is emerging as a key driver of this activity. Citizens projects that the tokenization market could generate nearly $100 billion annually by 2030, fueled by services like trading, custody, and data analytics. Stablecoins, in particular, are gaining traction, with their total capitalization rising to $315 billion—up from $250 billion in mid-2023—and on track to surpass $1 trillion.
Competition is intensifying as firms scramble to secure a foothold in the space. Legacy systems face pressure from blockchain’s speed and cost-efficiency, prompting many to adapt or risk being sidelined. Early movers with trusted brands and existing customer bases are poised to benefit, even as they must evolve their business models to meet emerging demands.
With regulatory clarity improving, customer interest growing, and the cost of inaction rising, Citizens anticipates a wave of consolidation that will shape the next phase of the digital-asset economy. As traditional and crypto-native players continue to merge, the industry is entering a pivotal era of transformation—one defined by strategic acquisitions, regulatory alignment, and the integration of blockchain into the mainstream financial system.