Institutions to Double Digital Asset Exposure by 2025: State Street
Research by State Street indicates that institutional investors are transitioning to large-scale adoption of digital assets.
- Over half of the surveyed institutions plan to double their digital asset exposure by 2025, showing increased comfort with blockchain investments.
- Tokenization of private equity and fixed income is identified as a likely starting point for these investments.
- By 2030, many expect 10% to 24% of portfolios to be tokenized, making it easier to trade traditionally illiquid assets.
- Key advantages of digital assets include improved transparency and operational efficiency, with over half citing better visibility into asset data.
- Approximately 50% anticipate cost savings of at least 40% through digital asset infrastructure.
- Emerging technologies like generative AI and quantum computing are seen as complementary tools for investment operations.
- State Street notes that 40% of institutions have dedicated digital asset units, signifying a strategic shift in operating models.