The line between crypto and traditional finance is blurring faster than anyone expected, and the Trump administration's regulatory approach is accelerating the shift. That was a central theme at a recent fintech conference where industry experts gathered to discuss what's coming for IPOs and M&A activity in 2026.

The Great Convergence

The biggest story in fintech right now? DeFi and traditional finance are colliding in real time.

"One of the big themes is convergence of DeFi and TradFi. That is really playing out," FT Partners Managing Director Roshan Punjabi told the audience. Recent M&A deals show how quickly the two worlds are connecting, he said.

"There's a regulatory environment that is clearly favorable for them right now. The Trump administration has definitely made that a big part of their story here as well."

Merchant Seven Managing Partner Pierce Crosby pointed to concrete examples, like Mastercard (MA) scooping up crypto infrastructure startup Zerohash. Companies are increasingly choosing acquisition over the IPO path, he said.

"A lot of businesses are available for sure, and I think a lot of investors, especially in the VC world, are getting a little like antsy, if you will, about liquidity," Crosby explained.

The pressure to buy is intensifying, Crosby added, because building from scratch takes too long.

"You have to buy, you have to buy in order to get ahead of whatever trend that is occurring in the market, because most teams, if not 99% of teams, do not have the capability to see what's going to happen and then be able to build ahead of the trend."

Rethinking the IPO Roadmap

Tickblaze CEO Sean Kozak said companies should rethink whether going public is even the goal.

"Less than 8 to 10% of all companies go public," Kozak noted. "So that build out is very, very different depending on the roadmap of the company."

For his own company, Kozak said he prefers focusing on acquisitions rather than just internal development.

"We were very aggressive with our roadmap and that means going out and raising capital because it really is about speed of execution and being able to deliver on revenue."

AI: Helpful Tool or Overhyped?

Artificial intelligence came up repeatedly, though the panelists offered a more measured take than the usual tech hype.

Punjabi said AI should tackle some of the financial industry's stubborn inefficiencies, like excessive paperwork and manual processes.

"AI should solve or help solve a lot of those aspects and speed up," Punjabi said, though he cautioned it won't fix everything.

Crosby pointed out that finance has been using AI "way before it became a consumer trend." But he doesn't see it as a game-changer for 2026 specifically.

"I don't think that AI is going to be the silver bullet in 2026, I think it will definitely change multiples," Crosby said.

Kozak warned companies to be strategic about AI integration rather than rushing to slap it onto everything.

"I think any businesses that's trying to grow, if they don't incorporate AI, I mean, they're really not listening to what the industry in the world is saying," Kozak said.

Still, he emphasized that AI is an enhancement, not a business model. It's an "add-on" that can help scale infrastructure, but "it's not the replacement to a good business."

The message from the panel was clear: 2026 will be shaped by regulatory tailwinds, impatient capital, and smart technology adoption. Companies that can navigate all three simultaneously might just have the edge.