Institutions Plan to Double Digital Asset Allocation by 2028

State Street's 2025 global research indicates a strategic shift among institutional investors towards digital assets and blockchain, moving beyond pilot projects to significant investments.

Nearly 60% of institutional investors plan to increase their crypto allocation in the next year. Average exposure is expected to double within three years.
Private markets are a primary focus, with tokenization of private equity and fixed income leading the efforts to enhance liquidity and tradability.
By 2030, 10-24% of institutional investments may be made through tokenized instruments.

Investors cite increased transparency (52%), faster trading (39%), and lower compliance costs (32%) as key benefits. Almost half expect cost savings over 40% due to improved transparency.

Operational changes include:

40% of firms have dedicated digital asset teams or units.
Blockchain and digital operations are integrated into broader digital strategies for nearly a third of firms.
Development of new products like tokenized bonds, on-chain wrappers, stablecoins, and tokenized cash is underway.
20% of firms plan to establish new digital asset groups soon, indicating organizational shifts alongside capital commitments.

Generative AI and quantum computing are expected to significantly impact investment operations, complementing rather than replacing tokenization efforts.