tZero 2026 IPO is coming! Blockchain tokenization bets on a $400 trillion market

tZero Group is a blockchain infrastructure company based in New York, focusing on tokenization of securities and real-world assets, and is preparing for an IPO in 2026. CEO Alan Konevsky confirmed that discussions are ongoing with multiple banks to determine underwriters, and the company has over 50 employees and may seek an additional round of funding before the listing.

tZero targets the timing for tokenized securities to launch in 2026

(Source: tZERO Official Website)

On October 27, tZero announced plans to go public in the United States, indicating its confidence in the expanding market for asset tokenization and regulated blockchain finance. Founded in 2014, tZero enables companies to raise funds and trade tokenized securities in compliance with U.S. securities laws, bridging traditional finance with blockchain-based systems. This positioning differentiates tZero from pure cryptocurrency exchanges or DeFi protocols, as it focuses on regulated security tokenization, a market with lower regulatory risks but significant potential.

CEO Alan Konevsky told Bloomberg that tZero is in discussions with several banks to determine underwriters. This public disclosure indicates that the IPO plan has entered a substantive phase. Choosing underwriters is a key step in the IPO process, as underwriters are responsible for assessing the company's value, drafting the prospectus, conducting roadshow promotions, and final pricing. Discussing with multiple banks means that tZero is evaluating different listing strategies and valuation options.

The company has more than 50 employees but has not yet turned a profit, and may seek an additional round of funding before going public. This candid disclosure shows that tZero is taking a pragmatic approach. Many tech companies are not profitable at the time of their IPO, and investors value growth potential and market opportunities. Additional funding may be used to expand the team, enhance technological infrastructure, develop customer relationships, and present stronger business data during the IPO roadshow.

So far, tZero has raised approximately $200 million, including from the Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange. ICE's investment is strategically significant. As one of the largest exchange operators in the world, ICE has a deep understanding of financial market infrastructure. Its choice to invest in tZero demonstrates that traditional financial giants recognize the prospects of tokenization securities. ICE's participation also brings valuable industry resources and networks to tZero.

Key Information about tZero IPO:

Estimated time: Expected to be listed in the United States in 2026

Funding History: Approximately $200 million raised, with well-known institutions such as ICE participating.

Employee Size: More than 50 employees

Profit Status: Not yet profitable but preparing for additional financing

Business Focus: tokenization of securities and real-world assets (RWA)

The company stated that its plan for going public emphasizes a belief that tokenization will reshape the capital markets by enabling faster, more transparent, and global transactions. This vision is not a fantasy. Tokenized securities can be traded 24/7 (traditional securities exchanges have fixed trading hours), settlement times are reduced from T+2 to instant, cross-border investments do not require complex intermediaries, and ownership records are fully transparent and immutable.

400 trillion traditional financial market to be unlocked

Tokenization converts real-world assets such as stocks, real estate, or currency into blockchain-based digital tokens that can be traded 24/7. Web3 digital asset company Animoca Brands stated in a recent study that the tokenization of RWA could unlock a $400 trillion traditional financial market.

Animoca researchers Andrew Ho and Ming Ruan stated that the global private credit, government bonds, commodities, stocks, alternative funds, and bond markets represent vast growth potential. They wrote, “The potential $400 trillion TradFi market highlights the growth potential of RWA tokenization.” This figure is nearly four times the global GDP, indicating that if tokenization can penetrate various sectors of traditional finance, the market space will be extremely impressive.

The calculation of 400 trillion dollars is based on the total scale of global financial assets. The global stock market has a market value of about 100 trillion dollars, the bond market about 130 trillion dollars, and the real estate market about 280 trillion dollars (of which a large portion is commercial real estate and investment properties), along with alternative investments such as private equity, hedge funds, and commodities, bringing the total scale indeed close to 400 trillion dollars. If even 5% of these assets were tokenized, that would be a market of 20 trillion dollars.

At the same time, according to the 2025 SkyNet RWA Security Report, the tokenized RWA market size could grow to 16 trillion dollars by 2030. This forecast is more conservative and realistic, representing a target that could be achieved within the next 5 years. 16 trillion dollars means that about 4% of traditional financial assets will be tokenized, which is a reasonable penetration rate in the early adoption phase of innovative technologies.

tZero, as a regulated tokenization securities platform, is at the heart of this trend. It does not aim to disrupt traditional finance, but rather to provide blockchain infrastructure for traditional finance, enabling it to operate more efficiently. This “improvement rather than revolution” strategy is more likely to gain acceptance from regulators and traditional financial institutions.

Crypto IPO Frenzy: Circle Soars 7 Times Demonstrating Effect

Last month, BitGo officially filed for an Initial Public Offering (IPO), becoming the first professional cryptocurrency custody institution to seek listing on a U.S. stock exchange. BitGo's IPO application comes at a time when the momentum for crypto-related public offerings is rising again. In 2025, several notable public companies emerged in the digital asset space.

The stablecoin issuer Circle caused a sensation with its IPO in June, soaring more than 7 times since its listing. Circle is the issuer of USDC, the world's second-largest stablecoin after USDT. Circle's successful listing demonstrates the appeal of crypto infrastructure companies in the public market. The 7-fold increase shows strong demand from investors for stablecoins and digital payment infrastructure.

In addition, Galaxy Digital, led by Mike Novogratz, moved its listing from the Toronto Stock Exchange to NASDAQ earlier this year. This move reflects the increasing acceptance of crypto companies in the U.S. market. The liquidity and investor base of NASDAQ far exceed that of Toronto, and Galaxy Digital's relocation is expected to bring higher valuations and trading volumes.

Recently, Figure Technology Solutions Inc., a blockchain-focused lending platform, raised $787.5 million in its initial public offering. The San Francisco-based company sold 31.5 million shares at a price of $25 per share, with a company valuation of approximately $5.3 billion. Figure's initial target price was lower, but in the days leading up to the listing, the number of shares and price were increased, indicating strong investor demand.

2025 Crypto IPO Wave:

Circle: Launched in June, up over 7 times, stablecoin issuer

Galaxy Digital: Transitioning to NASDAQ, led by Mike Novogratz

Figure: Raised $787.5 million, blockchain lending platform

The common characteristics of this wave of IPOs are: focusing on regulated crypto infrastructure rather than speculative tokens, having a clear business model and revenue source, obtaining investment endorsement from traditional financial institutions, and being listed in the relatively clear regulatory U.S. market. These features enable them to gain recognition from mainstream investors.

tZero's Competitive Advantages and Challenges

tZero's competitive advantage lies in its first-mover position and regulatory compliance. Founded in 2014, tZero has been operating in the tokenization securities space for over 10 years, accumulating rich compliance experience and regulatory relationships. It is one of the first blockchain platforms to receive approval from the U.S. SEC to operate an Alternative Trading System (ATS), and this regulatory license serves as a competitive barrier.

However, tZero also faces severe challenges. Firstly, there is the issue of profitability. The company admits that it has not yet turned a profit, which may raise questions among investors at the time of its public listing. While it is not uncommon for growth-oriented tech companies to go public without being profitable, investors need to see a clear path to profitability. Secondly, competition is intensifying. Traditional financial institutions such as BlackRock and Franklin Templeton are also entering the tokenization securities space, and they have large customer bases and brand advantages. Thirdly, there is the market timing. The state of the cryptocurrency market in 2026 will directly affect the success of the IPO.

For investors, the tZero IPO offers the opportunity to participate in the tokenization of securities revolution. If the company can successfully capture a small portion of the $16 trillion RWA market, it will bring considerable returns. However, considering that it is not yet profitable and the intense competition, this is a high-risk, high-reward investment. Cautious investors may wait for the actual performance post-IPO, observing its revenue growth and changes in market share before making a decision.