Crypto M&A transactions are coming back, with European dealmakers betting on fintech firms to act as industry consolidators next year.

“It is worth thinking of crypto applications in terms of the building blocks for digital services,” according to Janina Heinz, Frankfurt-based partner for Freshfields specialising in regulatory issues for financial services.

Stripe, a payments company with dual headquarters in California and Ireland, announced a deal to buy stablecoin provider Bridge for a reported USD 1.1bn, which is seen as a bellwether for this trend.

European crypto M&A exploded into the mainstream in 2021 with a combined value of EUR 3.8bn spread over 66 deals, according to Mergermarket data. Although full-year (FY) volumes fell in 2022 and 2023, they stayed above EUR 1bn in both cases.

The year-to-date (YTD) result for 2024 has already powered past the FY results for the previous two years, with EUR 1.4bn spread over 34 deals, largely thanks to Stripe. This means that FY24 will be the second-strongest deal for crypto deals across the Continent.

Crypto bros move to White House 

“Crypto deals slumped about 18 months ago, but the mood in the market seems to be changing, particularly after the US election,” according to Cyrus Pocha, London-based partner for Freshfields specialising in financial services regulatory and co-head Global Fintech Group.

The industry poured hundreds of millions of dollars into the US presidential election, with the bulk going to President-elect Donald Trump’s campaign. He has given one crypto enthusiast, Elon Musk of Tesla and X, a role slashing government regulation and has nominated another, Cantor Fitzgerald CEO Howard Lutnick, to be US commerce secretary.

“Any companies that would benefit from a deregulatory environment should perform well next year,” according to Aman Behzad, managing partner of Royal Park Partners. “That includes crypto, credit and lending businesses, and banking technology providers.”

What’s next?

Areas of interest include the tokenised rewards space, while some firms are issuing tokens alongside shares, Pocha of Freshfields said. “At the same time, traditional financial services firms are using M&A to digitise and upgrade their tech,” he said, adding that some crypto firms might choose to sell as a result.

Saxo Bank is one name to watch. The Danish company, which offers digital trading and investment services for stocks, bonds, cryptocurrencies and commodities, has hired Goldman Sachs to find a buyer, with valuation expectations of up to EUR 2bn.

BCP Group is also a company to watch. The UK-based crypto-dedicated payments company received a buyout approach as it prepared a Series B round, as reported. It raised USD 60m in 2022.

Public markets could also play a role. Bitpanda, an Austrian unicorn, has hired JP Morgan, Citi and White & Case to help it prepare for a potential listing next year. Its growth plan is based on commercial partnerships with fintech specialists and banks that want to offer crypto distribution services to customers.

Meanwhile, UK-based fintech Revolut has been leading the way in integrating crypto offerings alongside its more conventional financial services. However, the company is unlikely to try and list before 2026 due to the challenges of replicating its USD 45bn valuation on the public markets, as reported.

The convergence of the crypto and fintech is likely to be one of the secular trends of 2025, yielding mandates and investment opportunities for dealmakers.