Jefferies predicts crypto and blockchain firms could grow into a $1 trillion public market within five years.
Crypto News
Jefferies expects a surge of crypto and blockchain-related public listings over the next two years and projects the sector could grow into a $1 trillion public market within five years. The bank published that forecast in a May 27 report following its first Digital Assets Investor Conference in New York.
The event gathered executives from 35 digital asset companies alongside roughly 150 institutional investors. Discussion focused on how blockchain infrastructure is being integrated into core financial systems, covering tokenized money market funds, private credit products, and blockchain-based settlement networks rather than Bitcoin (BTC) price speculation.
Jefferies said client conversations showed growing conviction that blockchain has moved out of the experimental phase and into financial infrastructure. "Client engagement continues to grow as focus shifts to emerging beneficiaries as banks, exchanges, asset managers, fintechs and payments companies integrate blockchain infrastructure," the report stated.
Tokenization Moves Into Production
The bank identified tokenization, the process of representing financial assets on blockchain networks, as a primary driver of that shift. Executives at the conference said tokenized money market funds and blockchain settlement systems are already moving into production, supported by recent regulatory guidance that reduced legal uncertainty around digital assets.
The crypto initial public offering (IPO) market slowed in 2026 after a more active 2025. That pullback tracked broader market volatility and macroeconomic uncertainty, but another wave of listings is expected later in the year. Digital asset firms such as Securitize and Payward, the parent company of Kraken, are among those currently finalizing IPO plans.
Earlier in 2026, Securitize partnered with transfer agent Computershare to allow public companies to issue tokenized shares within existing shareholder record systems. Crypto platform Bullish separately agreed to acquire transfer agent Equiniti for $4.2 billion to expand its blockchain-based settlement infrastructure.
Stablecoins and tokenized payments were cited repeatedly at the conference as near-term growth areas, particularly as payment companies seek lower-cost cross-border transfer options and round-the-clock settlement. Firms participating in the event included Ripple, Kraken, Galaxy, Bullish and Consensys.
Jefferies argued that passage of the proposed CLARITY Act could be the catalyst that pushes blockchain-based finance further into the mainstream. "Investors frequently overestimate the magnitude of tech disruption in the near term and underestimate it over the longer term," the report said.
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