They said the crypto market was over... Wall Street eyes cryptocurrency IPO opportunities

▲ Bitcoin (BTC), Wall Street/AI-generated image

The cryptocurrency IPO market has once again emerged as a target for Wall Street. Jefferies predicted that if tokenization and regulatory clarity align, cryptocurrency and blockchain listed companies could grow into a $1 trillion public market within five years.

According to CCN on May 27 (local time), Wall Street investment bank Jefferies predicted that cryptocurrency and blockchain-related IPOs could surge over the next two years. Jefferies analyzed that as the adoption of digital asset infrastructure spreads across financial institutions, the industry could grow into a $1 trillion public market within five years.

2025 was an active year for digital asset industry IPOs. Major cryptocurrency companies such as Circle Internet Group, Bullish, and Gemini pursued listings. However, the momentum for new listings in the industry slowed down as the cryptocurrency market plummeted in October 2025, coupled with geopolitical tensions.

Nevertheless, Jefferies believes that the IPO pipeline has not broken. BitGo Holdings proceeded with an IPO in January 2026, and Blockchain.com also recently applied for a listing. Jefferies explained that institutional investors are focusing on the trend of blockchain infrastructure integrating into the actual financial system, rather than mere speculation on Bitcoin (BTC) prices.

Tokenization is the key driver identified by Jefferies. Tokenization is the process of converting real-world assets into blockchain-based digital tokens, and its application is expanding into existing financial areas such as money market funds, private loans, and payment networks. Traditional financial institutions are strengthening cooperation with cryptocurrency-based companies to secure faster settlements, improved capital efficiency, and low-cost 24-hour payment infrastructure.

Regulatory clarity was also presented as crucial for the IPO boom. Jefferies assessed that US cryptocurrency market structure legislation could be the "missing piece" to facilitate the entry of large financial institutions into blockchain-based finance. The cryptocurrency IPO market is moving beyond speculative trading driven by price fluctuations, towards an infrastructure competition on Wall Street, spearheaded by payment, settlement, and tokenized products.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*