A wave of crypto IPOs could pave the way for a $1 trillion market as tokenization accelerates, Jefferies notes.

Jefferies is projecting a renewed wave of crypto and blockchain IPOs as institutional investors increasingly turn their attention to digital asset infrastructure rather than short-term market speculation.

Following its first Digital Assets Investor Conference in New York, the bank said it expects public listings in the sector to accelerate over the next two years, with the potential to build a $1 trillion public market within five years.

The event brought together executives from more than 30 crypto firms and a large group of institutional investors, with discussions centered on how blockchain technology is being embedded into traditional financial systems. The focus has shifted away from bitcoin price movements toward real-world use cases across trading, payments and asset management.

According to Jefferies, investor sentiment is evolving as blockchain moves beyond its experimental phase and becomes a foundational layer of financial infrastructure. Market participants are increasingly targeting companies that enable this transition, including exchanges, custodians, fintech platforms and payments providers.

After a surge in IPO activity in 2025, issuance has slowed amid broader macro uncertainty. However, Jefferies expects momentum to return, noting that several crypto firms are already preparing to go public.

Tokenization emerged as a central theme at the conference, with growing adoption across products such as money market funds, private credit and settlement systems. Improved regulatory clarity has helped move many of these applications from pilot stages into live deployment.

The shift is also evident across traditional finance, where major institutions are integrating blockchain technology into their operations regardless of crypto market volatility. The emphasis is increasingly on efficiency, cost savings and the development of new financial products.

Stablecoins and tokenized payments were highlighted as key near-term growth areas, particularly for cross-border transactions and real-time settlement. These technologies are seen as critical to building a more efficient and continuously operating financial system.

Jefferies also pointed to regulation as a key variable, noting that clearer legal frameworks could accelerate institutional adoption. Proposed U.S. legislation aimed at defining digital asset market structure could serve as an important catalyst.

At the same time, partnerships between traditional financial firms and crypto-native companies are expanding, reflecting a more collaborative approach to building blockchain-based infrastructure.

Overall, Jefferies said investor focus is shifting toward durable revenue models tied to trading, payments, lending and tokenized assets, rather than speculative segments of the market.

The bank concluded that while near-term progress may be uneven, the long-term impact of blockchain integration across the financial system is likely to be substantial.