Crypto Momentum Boosts Securities Exchange Growth

The securities and exchanges industry is witnessing a resurgence, powered in large part by the booming crypto sector. Key players like Intercontinental Exchange (ICE), Nasdaq (NDAQ), CME Group (CME), and Cboe Global Markets (CBOE) are benefiting from expanded product portfolios, surging trading volumes, and increasing crypto adoption.

In President Donald Trump’s second term, the crypto-friendly environment is fostering new opportunities for exchanges. As digital assets gain institutional credibility, this shift is reshaping trading habits and unlocking fresh revenue streams.

Crypto Trading Adds Fuel to Volatility and Fees

Volatility is a major growth engine for exchanges, and crypto markets are naturally volatile. As crypto becomes more mainstream, trading volume surges across asset classes. More trades mean more transaction and clearing fees — a key revenue component.

Trump’s deregulatory stance is also expected to further stimulate crypto trading activity. Reduced regulatory friction encourages both retail and institutional investors to engage more actively with digital assets, resulting in a boom for exchange revenue.

According to Technavio, the securities exchange market could hit $49.6 billion by 2028, with a five-year CAGR of 12.1%. Much of that growth will be attributed to the rise of crypto assets like Bitcoin and Ethereum.

M&A Activity Accelerates Crypto Integration

Exchanges are aggressively pursuing mergers and acquisitions to capture more of the crypto market. Coinbase (COIN) is reportedly in talks to acquire Deribit, a leading derivatives exchange. There are also rumors that Circle, a key stablecoin issuer, might be acquired by COIN or Ripple.

These deals are about more than market share — they signal deep integration between traditional financial platforms and crypto infrastructure. Strategic buyouts not only expand product offerings but also embed crypto into the global financial fabric.

Deloitte confirms that consolidation is a response to new legal, technological, and competitive pressures. The race to gain a dominant position in crypto trading is intensifying.

Technology Investments Power Crypto-Ready Platforms

To stay ahead, industry leaders are pouring capital into tech upgrades. AI, blockchain, and automation are becoming essential components of modern exchange systems.

Crypto integration is front and center in these investments. Exchanges are not only expanding their listings of digital assets but also building platforms that can support crypto-native products like tokenized stocks and derivatives.

Kraken’s launch of xStocks — tokenized shares of U.S. companies — is a perfect example. Though unavailable in the U.S. for now, these products show how exchanges are using blockchain to reshape traditional finance with crypto at the core.

Strong Outlook Backed by Market and Analyst Confidence

The Zacks Securities and Exchanges industry carries a Zacks Industry Rank of #10, placing it in the top 4% of over 250 industries. This is based on improving earnings estimates, especially as crypto boosts trading volumes and platform engagement.

Estimates for 2025 have been revised upward by 8.5% over the past year. The industry has already outperformed the broader Finance sector and the S&P 500 year-to-date — up 17.3% compared to the sector’s 3.9% gain and the S&P 500’s 1.8% decline.

Crypto Catalysts Signal Continued Industry Growth

As digitization and decentralization reshape finance, crypto is no longer a fringe trend — it’s a core driver of innovation. Exchanges that adapt quickly and expand into crypto markets will be best positioned to lead the next era of growth.

With increasing demand for digital assets, strategic acquisitions, and robust tech investment, the securities and exchanges industry is set to thrive.