- Trump threatens to cap deal activity in 2025, analysts warn.
- But several crypto firms are bucking the trend.
Ripple, Galaxy Digital, and Twenty One Capital are among crypto companies bucking expectations that deal activity will dry out due to US President Donald Trump’s trade war.
Crypto projects have secured $7.2 billion in venture funding in 2025, within spitting distance of the total $9.6 billion secured through the whole of 2024, according to DefiLlama.
Elsewhere, firms this year have reported 88 merger and acquisition deals worth $8.2 billion, almost triple the total transaction value of all of 2024, advisory firm Architect Partners told the Wall Street Journal.
The news comes after Risley and other market watchers warned that uncertainty around Trump’s tariffs against some 90 countries will puncture the crypto industry’s bull market and deal-making buzz.
Companies including Circle, Klarna, and Chime are said to have paused their plans to go public due to the uncertainty caused by Trump’s trade war.
The administration’s tariffs on some 90 countries punctured the crypto industry’s rally.
The global value of the cryptocurrency has crashed almost 22% since its December high, shedding some $845 billion in value.
Expected boom
The drop, along with firms halting their IPOs, signals that Trump’s tariffs have rattled markets.
“Macro uncertainty and continued regulatory fragmentation could delay some deals, particularly for firms without the scale or resources to navigate those pressures efficiently,” Dominic Longman, managing director for Middle East and Africa at Zodia Custody, told DL News.
It’s a sharp turn from earlier this year.
Shannon Kurtas, a senior director at crypto exchange Kraken, told DL News in February that Trump’s return to power will trigger more market activity, including a flurry of M&A deals.
Ripple’s deal
Ripple has led the charge in deals this quarter. In April, it announced plans to acquire prime broker Hidden Road for $1.25 billion.
The company was also in talks to acquire Circle for $4.5 billion, according to a Bloomberg. Circle is said to have rejected the bid, but neither firm confirmed the discussions.
Similarly, Zodia Custody, Standard Chartered and Northern Trust’s crypto asset custodian firm, announced that it is exploring the acquisition of Tungsten Custody Solutions, a United Arab Emirates-based custodian.
On Wednesday, Galaxy announced plans to list on the Nasdaq on May 16. The company, led by CEO Michael Novogratz, filed for an initial public offering earlier in April.
Twenty One also plans to go public via a special-purpose acquisition company, or SPAC, with the support of Tether, SoftBank, and an affiliate of Cantor Fitzgerald, the investment company run by US Commerce Secretary Howard Lutnick’s sons.
“2025 is going to be a major year for crypto M&A transactions and it could well surpass 2024 in terms of deal value and volume,” Longman said.
Eric Johansson is DL News’ News Editor. Got a tip? Email at eric@dlnews.com.
