The crypto industry is in the midst of a historic transformation. In 2025, traditional IPOs have replaced ICOs as the preferred path for major blockchain companies. Custodians, exchanges, stablecoin issuers, and trading platforms are breaking into the public markets, seeking institutional legitimacy and access to deeper capital pools. Circle’s headline IPO, Kraken’s pending public offering, and Gemini’s confidential SEC filing are just a few signals of this pivotal shift. The sector is shedding its “outsider” status and stepping boldly into the spotlight on Wall Street.
From Tokens to Stocks: Why 2025 Is the Year of the Crypto IPO
Just a few years ago, tokens and DAOs seemed to be the future for crypto-native firms. But 2025 is rewriting that playbook. Circle’s IPO in June sent a strong signal: the company’s shares (CRCL) jumped as high as $83.23—up nearly 170% from the $31 listing price—and remain up over 150% versus Bitcoin since debut. Institutional interest has surged, with ARK Invest alone deploying more than $560 million via ETFs.
Coinbase, a direct listing pioneer back in 2021, is now a member of the S&P 500 and serves as the benchmark for all future crypto IPOs. Its journey underlines what public investors demand: transparency, diversified revenue streams, and a strict separation between token business and shareholder equity.
Why Crypto Firms Favor IPOs Over Token Sales
- Regulatory Clarity: SEC compliance provides legal certainty and access to the US capital markets.
- Institutional Capital: Public listings open the door to global funds, pensions, and sovereign wealth.
- Brand & Trust: IPOs offer reputational uplift after a string of token-driven industry failures.
While token launches remain relevant for DAOs and smaller ventures, large global platforms with financial ambitions now recognize that going public is the new gold standard.
Hybrid Models and Tokenized IPOs
Platforms like Securitize and tZero are experimenting with “tokenized stocks”—equity shares recorded and traded on the blockchain. These models merge regulated market structures with Web3 infrastructure, pointing to a future where token sales and IPOs may eventually converge.
Next in Line: Kraken, Gemini, BitGo, and More
Kraken is targeting an IPO in Q1 2026, raising $500 million at a $15 billion valuation. Recent SEC lawsuits against the exchange have been dropped, signaling friendlier regulatory winds under the current administration. Gemini filed confidentially with the SEC in June, backed by Goldman Sachs and Citigroup, joining a growing list of crypto-native firms pursuing public listings.
BitGo, one of America’s largest crypto custodians, now manages over $100 billion in assets and has reportedly submitted its own IPO paperwork.
IPO Pitfalls: Challenges Facing Crypto Firms on Wall Street
- Regulatory Risks: Despite recent positive developments, regulatory uncertainty persists. Even as the SEC has dropped several cases, future policy shifts could impact market access and listing approvals.
- Token Accounting: How should exchanges or custodians treat proprietary tokens on the balance sheet—equity, current asset, or liability? Firms like Coinbase and BitGo are forced to navigate complex reporting rules.
- Reputation: The collapse of FTX and Celsius has heightened scrutiny. Publicly listed crypto firms must adhere to higher transparency and governance standards.
- Volatile Earnings: Crypto company revenues remain tied to Bitcoin and digital asset prices, complicating traditional valuation models for risk-averse investors.
Case Studies: Bullish, eToro, and the Global Context
Bullish—backed by Peter Thiel—has already filed for an IPO (ticker: BLSH) and boasts over $1.25 trillion in lifetime trading volume, challenging Binance, Coinbase, and Kraken for global market share. eToro, a broker offering both stocks and crypto, joined Nasdaq in May 2025 (ticker: ETOR), pricing at $52 per share for a $5 billion valuation.
2025 could be remembered as the year crypto firms fully embraced public markets. With Circle, Kraken, Gemini, BitGo, Bullish, and others leading the way—supported by regulatory momentum, surging institutional demand, and a maturing market—crypto is no longer an outsider, but a Wall Street heavyweight in the making.
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