Jeffries mentioned he expects a brand new wave of cryptocurrency and blockchain-related listings as institutional adoption of digital asset infrastructure accelerates on Wall Road and throughout the funds trade.
In a report launched after the inaugural Digital Asset Investor Convention in New York, Jefferies mentioned it expects a surge in crypto-related listings over the subsequent two years and believes the sector might develop right into a $1 trillion public market inside 5 years.
The convention, which introduced collectively executives from 35 digital asset firms and about 150 institutional traders, centered much less on Bitcoin value hypothesis and extra on how blockchain programs have gotten built-in into conventional finance.
Jeffries mentioned conversations with shoppers present traders have gotten more and more assured that blockchain know-how is shifting past experimentation and into core monetary infrastructure.
“Buyer engagement continues to develop as banks, exchanges, asset managers, fintechs, and funds firms combine blockchain infrastructure and shift focus to new beneficiaries,” the report mentioned.
The crypto IPO market has slowed this yr after a booming 2025, when a number of digital asset firms efficiently went public amid rising Bitcoin costs and renewed investor urge for food for crypto-related shares. Whereas the latest decline in listings largely displays broader market volatility and macroeconomic uncertainty, a wave of latest listings is anticipated later this yr, with a number of crypto firms finalizing IPO plans, together with Securitize and Kraken guardian Payward.
Jeffries additionally pointed to tokenization, the method of representing monetary property on blockchain networks, as one of many greatest drivers behind that change. Convention executives mentioned tokenized cash market funds, non-public credit score merchandise and blockchain-based cost programs have already begun operations following latest regulatory steerage that reduces authorized uncertainty round digital property.
The development of Wall Road embracing blockchain know-how and de-focusing on crypto costs has been a recurring theme in latest months. Massive monetary establishments comparable to JPMorgan, Morgan Stanley, and different conventional fintech firms are absolutely dedicated to incorporating the know-how into their enterprise fashions, it doesn’t matter what the worth of Bitcoin is.
In truth, tokenization and stablecoins had been a serious theme at this yr’s Consensus Miami, overshadowing all different crypto-related discussions. “We’re shifting right into a world the place primarily the whole financial system is tokenized,” mentioned Joseph Rubin, CEO and founding father of ConsenSys in Miami.
Jefferies argued that better regulatory readability might additional speed up adoption, notably amongst extremely regulated monetary establishments. The financial institution pointed to the proposed CLARITY Act, which might set up a broader market construction framework for digital property within the U.S., and mentioned the invoice might be the “lacking piece” that fosters funding by institutional traders and pushes blockchain-based finance additional into the mainstream.
“Destruction of know-how”
The report additionally highlighted that conventional monetary firms are more and more partnering with crypto-native infrastructure suppliers reasonably than competing immediately with them.
Convention panelists described the rising ecosystem through which banks, buying and selling platforms, and cost firms are leveraging blockchain networks to scale back cost instances, enhance capital effectivity, and launch new monetary merchandise.
Earlier this yr, tokenization agency Securitize partnered with securities trade Computershare to assist publicly traded firms concern tokenized shares immediately inside their present shareholder file system, whereas cryptocurrency platform Blish (BLSH), proprietor of CoinDesk, agreed to accumulate securities trade Equinity for $4.2 billion to energy its blockchain-based funds infrastructure.
Stablecoins and tokenized funds have been repeatedly talked about as key areas for near-term progress, particularly as cost firms search for methods to scale back the price of cross-border transfers and function across the clock.
The convention was attended by executives from firms comparable to Ripple, Kraken, Galaxy (GLXY), Blish (BLSH), and ConsenSys.
When BlackRock first launched its Bitcoin exchange-traded fund, institutional adoption was the largest driver, and the way that adoption would play out was one of many hottest matters on the time. Quick ahead to as we speak, and these subtle traders seem to view this sector not as a short-term speculative commerce, however as a disruptive know-how that may improve their enterprise fashions over the long run.
Jeffries mentioned the discussions replicate a broader shift in investor curiosity from meme cash and speculative buying and selling exercise to blockchain programs that generate income from buying and selling, funds, lending and tokenized monetary merchandise.
“Buyers typically overestimate the magnitude of technological disruption within the quick time period and underestimate the magnitude of know-how disruption in the long run,” the report mentioned.
