Crypto IPOs face litmus test as public markets become more selective in 2026

Crypto companies are returning to the public markets after several years on the sidelines. Introductions in 2025 reflect renewed confidence after a prolonged downturn. The major test, however, remains to come. Laura Katherine Mann, partner at White & Case, says 2026 will determine whether crypto IPOs can maintain investor confidence beyond market cycles.

Circle, Bullish, Gemini lead crypto IPO revival in 2025

Mann describes 2025 as a “test year” for crypto IPOs. The show has resumed, but long-term performance remains uncertain. She says 2026 will determine whether digital asset IPOs represent a sustainable segment of the public market or short-term transactions tied primarily to token price movements.

IPO activity has increased this year, beginning with the public listing of stablecoin issuer Circle in June. Bullish followed with an August launch, while Gemini went public in September. Each transaction was aimed at improving investor appetite following the downturn following the market peak in 2021.

Attention now turns to the next round of potential issuers. South Korean exchange Upbit, crypto prime broker FalconX and blockchain analytics firm Chainalysis are among the companies considered possible candidates. Asset management firm Grayscale has already filed to go public in the United States, adding to expectations of a busy pipeline next year.

Institutional interest returns as companies face increased scrutiny in public markets

Global crypto activity has recovered from the decline. Trading volumes, institutional participation, and product development are all above recent lows. Still, Mann explains that the key question is whether crypto companies can maintain this momentum long enough to meet public market expectations. Interest from crypto-native investors alone might not be enough.

Volatility remains a major concern for stock investors heading into 2026. Bitcoin more than doubled in 2024, hit new highs in 2025, and then declined sharply. Mann explained that price fluctuations affect revenue stability, user activity and valuation models. Public investors are generally less tolerant of these variations than private investors.

Traditional finance also influences market expectations. S&P Dow Jones Indices announced plans in October to launch a product combining digital assets and crypto-related public companies. Mann points out that these developments indicate broader acceptance as market infrastructure adapts to include the sector.

Crypto IPO pipeline leans toward exchanges and brokers

Greater institutional participation has led to stricter standards. Risk appetite may improve, but selectivity increases more quickly. Mann points to MSCI's review of whether to exclude companies holding more than half of their assets in crypto, particularly digital asset treasury companies. This discussion reflects a growing divide between operating and balance sheet-focused companies.

As more companies consider going public, investors evaluate several factors that are likely to influence results in 2026 :

• Revenue generated by services rather than daily token price movements.
• Clear regulatory position and compliance records.
• Limited reliance on crypto holdings as primary assets.
• Business models comparable to established financial firms.
• Performance explained using standard fairness metrics.
• Key regulatory developments in the crypto space.

There is also a shift in the types of companies that should go public. While 2025 saw several introductions of digital asset treasuries, Mann expects 2026 candidates to look more like financial infrastructure providers. Companies that can demonstrate compliance frameworks, recurring revenue and operational stability are likely to attract broader investor interest.

Regulated exchanges and brokers feature prominently among these candidates. Mann explains that companies already operating under bank-style compliance regimes can present themselves as established businesses. For these companies, an IPO represents a natural step. Kraken has already filed to go public and could list as early as the first quarter of next year.

Crypto IPO Momentum Meets Valuation Discipline Before 2026

Another group under consideration are stablecoin payment platforms and treasury-focused businesses. Legal frameworks are improving in both the United States and Europe. Mann cites the GENIUS Act and MiCA rules in Europe as providing clearer guidelines for issuers of fiat-backed stablecoins. Structures resembling regulated financial institutions are generally easier for public investors to evaluate.

Despite these favorable developments, caution remains. Valuation discipline has returned, and recent tech IPOs show companies listing at later stages and on a larger scale. Crypto companies looking to go public in 2026 are likely to face similar scrutiny.

Macroeconomic uncertainty adds additional risk. Continued weakness in crypto prices since October, or a broader pullback in tech and AI stocks, could reduce risk appetite. Mann warned that such conditions could quickly close the IPO window for many potential issuers.

A recovery could reverse sentiment just as quickly. Stronger pricing and continued regulatory progress would likely encourage more companies to pursue IPOs. Mann notes that 2025 has shown that crypto companies can return to the public markets. The outcome in 2026 will determine whether they can stay there.