Ripple and FTX, two leading cryptocurrency startups, are looking for acquisitions as the industry seeks to drive expansion by acquiring other companies, accoridng to a report by CNBC.

It indicates that some crypto firms believe they are substantial enough and well-capitalized to spend money on acquisitions.

In an interview last week, Brett Harrison, president of cryptocurrency exchange FTX U.S., stated that the company is in “a very strong situation in terms of our capital and cash” and will “look around the market for prospective merger and acquisition options.”

Harrison stated that FTX US will hunt for companies that can assist them in acquiring more users or regulatory permits.

FTX purchased trading platform Blockfolio in 2020, which helped them gain more users. CNBC reported earlier this month that FTX is searching for brokerage start-ups to acquire in order to expand into stock trading.

Last year, FTX US acquired LedgerX, a futures exchange with numerous licences from US regulators.

“We’re doing that globally, in places like in Japan, Australia, in Dubai, different places where we’ve been able to either partner with local companies or sometimes do acquisitions to be able to get licenses that we need,” Harrison said.

Meanwhile, Brad Garlinghouse, CEO of cross-border payments provider Ripple, stated that the company has a “very robust balance sheet,” forecasting an increase in crypto sector mergers and acquisitions.

“I think there’ll be an uptick in M&A in the blockchain and crypto space. We haven’t seen that yet. But I think that’s likely in the future. And I certainly think as that unfolds, we would consider things like that,” Garlinghouse told CNBC in an interview last week at the World Economic Forum in Davos, Switzerland.

“We’re now at a stage of growth where I think we’re more likely to be the buyer versus the … seller,” he added.

According to PWC, crypto merger and acquisition activity soared in 2021, with the global value of such transactions exceeding $55 billion, up from $1.1 billion in 2020. This coincided with a surge in cryptocurrency prices, with bitcoin reaching an all-time high in November of last year.

Prices, however, have recently plummeted. According to CoinDesk data, Bitcoin is around 55 per cent off its all-time high of $68,990.90.

A dip in cryptocurrency prices, as well as company values in the industry, may make certain acquisitions more appealing to larger firms.

(Adapted from CNBC.com)