Crypto IPOs may ignite a substantial $1 trillion market as tokenization trends accelerate, Jefferies indicates.

The investment bank on Wall Street anticipates a surge of public listings in the crypto and blockchain sectors over the upcoming two years, as institutional investors pivot from speculative trading to tangible financial infrastructure.

What to know:

— Jefferies forecasts a spike in public listings associated with crypto and blockchain in the next two years, predicting the sector could evolve into a $1 trillion public market within five years.

— Institutional investors are refocusing from speculation on bitcoin prices to the incorporation of blockchain infrastructure into essential financial systems, which includes tokenized money market funds, private credit, and settlement networks.

— Traditional financial institutions are increasingly collaborating with crypto-native service providers to leverage blockchain for swifter settlements, enhanced capital efficiency, and lower-cost, 24/7 payments, with stablecoins and tokenized payments highlighted as key areas for near-term expansion.

In this article

Jefferies stated it anticipates a new wave of public listings related to crypto and blockchain as institutional adoption of digital asset infrastructure accelerates on Wall Street and within the payments sector.

In a report released following its inaugural Digital Assets Investor Conference in New York, Jefferies expressed that it expects an influx of crypto-related public offerings over the next two years and believes the sector could transform into a $1 trillion public market within five years.

The conference convened executives from 35 digital asset firms alongside approximately 150 institutional investors, emphasizing less on bitcoin price speculation and more on the growing integration of blockchain systems into conventional finance.

Jefferies noted that discussions with clients revealed investors are increasingly convinced that blockchain technology is progressing beyond experimental phases and into foundational financial infrastructure.

“Client engagement continues to rise as focus shifts to emerging beneficiaries as banks, exchanges, asset managers, fintechs, and payment companies integrate blockchain infrastructure,” the report stated.

The crypto IPO market has decelerated this year following a robust 2025, during which numerous digital asset firms successfully went public amid rising bitcoin prices and renewed interest in crypto-related stocks. The recent slowdown in listings has largely mirrored broader market volatility and macroeconomic uncertainty; however, another wave of offerings is anticipated later this year, with several crypto companies, including Securitize and Payward, the parent entity of Kraken, finalizing their IPO strategies.

Jefferies also emphasized tokenization—the process of representing financial assets on blockchain networks—as a major catalyst for this shift. Executives at the conference indicated that tokenized money market funds, private credit products, and blockchain-based settlement systems are already being implemented following recent regulatory guidance that mitigated legal uncertainties surrounding digital assets.

The trend of Wall Street embracing blockchain technology while not concentrating on crypto prices has been a recurring theme in recent months. Major financial institutions such as JPMorgan, Morgan Stanley, and other traditional fintech companies are fully committing to integrating the technology into their business models, regardless of the fluctuations in bitcoin pricing.

Indeed, tokenization and stablecoins were the primary subjects at Consensus Miami this year, overshadowing all other crypto-related topics. «We’re transitioning into a reality where essentially the entire economy will be tokenized,” asserted Joseph Lubin, CEO and founder of Consensys in Miami.

Jefferies contended that greater regulatory clarity could further expedite adoption, particularly among heavily regulated financial institutions. The bank referenced the proposed CLARITY Act, which aims to establish a broader market structure framework for digital assets in the U.S., stating that the legislation could be «the missing piece» that drives more institutional investments and propels blockchain-based finance further into the mainstream.

‘Tech disruption’

The report also underscored how traditional financial firms are increasingly opting to partner with crypto-native infrastructure providers instead of competing against them.

Panelists at the conference depicted a growing ecosystem where banks, trading platforms, and payment firms utilize blockchain networks to decrease settlement times, enhance capital efficiency, and launch new financial products.

Earlier this year, tokenization firm Securitize collaborated with transfer agent Computershare to assist public companies in issuing tokenized shares directly within existing shareholder record systems, while crypto platform Bullish (BLSH), the owner of Decryptnews, agreed to acquire transfer agent Equiniti for $4.2 billion to bolster its blockchain-based settlement infrastructure.

Stablecoins and tokenized payments were frequently mentioned as key areas for near-term growth, especially as payment companies seek methods to reduce the costs of cross-border transfers and operate continuously.

The conference featured executives from firms including Ripple, Kraken, Galaxy (GLXY), Bullish (BLSH), and Consensys.

While institutional adoption was the primary catalyst when BlackRock first initiated bitcoin exchange-traded funds, how that adoption would manifest was one of the most discussed topics at the time. Fast forward to today, and it appears these sophisticated investors are perceiving the sector as a disruptive technology that can enhance their long-term business models rather than engaging in short-term speculative trading.

Jefferies indicated that discussions reflected a broader shift in investor focus away from meme coins and speculative trading activities towards blockchain systems generating revenue from trading, payments, lending, and tokenized financial products.

“Investors often overestimate the immediacy of tech disruption while underestimating its long-term impact,” the report concluded.