Why Private Market Funding and M&A Outpace Public Markets for High-Growth Crypto Infrastructure Firms: The Ripple Case Study

The crypto infrastructure sector has entered a new phase of maturation, marked by a surge in private funding and strategic M&A activity. From 2023 to 2025, the industry witnessed a dramatic shift in capital allocation, with private market strategies increasingly outpacing public market alternatives. This trend is exemplified by Ripple, a crypto infrastructure leader that has leveraged private funding and aggressive M&A to achieve financial independence and sustained growth.

The Rise of Private Market Strategies in Crypto Infrastructure

Private funding and M&A have become critical tools for crypto infrastructure firms seeking to scale in a rapidly evolving regulatory and institutional landscape. In 2025 alone, crypto M&A activity reached a record $8.6 billion, driven by 265 transactions-nearly four times the 2024 level. Major deals, such as Coinbase's $2.9 billion acquisition of Deribit and Kraken's $1.5 billion purchase of NinjaTrader, underscored the sector's focus on consolidation and institutional readiness.

Simultaneously, late-stage private capital financing saw a resurgence, with venture capitalists investing $4.65 billion into crypto and blockchain startups across 415 deals in Q3 2025 alone. This influx of capital was concentrated in infrastructure, stablecoins, and AI-driven trading platforms, reflecting investor confidence in foundational crypto technologies. The return of IPO activity in 2025-11 crypto IPOs raised $14.6 billion globally-further signaled the sector's maturation. However, for firms like Ripple, the private market's flexibility and strategic advantages have proven more compelling than public market alternatives.

Ripple's Strategic Growth: M&A, Funding, and Financial Independence

Ripple's trajectory from 2023 to 2025 illustrates how private market strategies enable high-growth crypto firms to bypass public market constraints. The company executed six acquisitions in just over two years, including $1 billion+ deals for Rail, GTreasury, and Hidden Road. These acquisitions expanded Ripple's offerings into payments, custody, stablecoins, and corporate treasury management, creating a diversified infrastructure ecosystem.

A pivotal moment came in 2025 with a $500 million strategic funding round led by Fortress Investment Group and Citadel Securities, valuing Ripple at $40 billion. This funding not only solidified Ripple's financial independence but also enabled share repurchases and deeper partnerships with institutional clients. The company's RLUSD stablecoin, launched in 2024, reached a $1 billion market cap within a year, while Ripple Prime's foray into XRP collateralized lending demonstrated its ability to innovate across asset classes.

Crucially, Ripple has no immediate plans for an IPO, a decision reflecting its confidence in private market dynamics. Leadership has emphasized a focus on M&A, product development, and maintaining private status to avoid the regulatory and operational pressures of public markets. This approach aligns with broader trends: in 2025, fintech public market fundraising declined sharply, with global deals dropping 54% year-over-year in Q1 2025. Meanwhile, private market exits hit record levels in H1 2025, driven by narrowing bid-ask spreads and investor confidence in high-quality assets.

Private vs. Public: Why Crypto Infrastructure Firms Favor Flexibility

The divergence between private and public market strategies in fintech and crypto infrastructure highlights structural advantages of the former. Public markets, while offering liquidity, are constrained by regulatory scrutiny, volatile valuations, and short-term investor expectations. In contrast, private markets provide crypto firms with operational flexibility, longer investment horizons, and the ability to execute strategic M&A without public disclosure requirements.

For Ripple, this flexibility has been transformative. The company's ability to secure a $500 million funding round at a $40 billion valuation-despite broader private market fundraising challenges-demonstrates the appeal of high-quality, mission-critical infrastructure assets. Additionally, private capital deployment in 2025 surged due to higher interest rates and operational transformation priorities, further incentivizing firms to remain private.

Conclusion: A Blueprint for Crypto Infrastructure Growth

Ripple's success underscores a broader industry shift: private market funding and M&A are now the dominant pathways for high-growth crypto infrastructure firms. By avoiding public market pressures, leveraging strategic partnerships, and prioritizing long-term value creation, Ripple has positioned itself as a leader in a sector poised for sustained institutional adoption. As 2026 approaches, investors should closely monitor how private market dynamics continue to outpace public alternatives, particularly in firms with clear regulatory alignment and diversified infrastructure offerings.