Institutional investors are moving beyond the experimental phase and toward widespread adoption of digital assets, according to the Digital Assets Outlook 2025 report released by State Street (NYSE:STT).
The survey indicates that 60% of institutions intend to increase their allocations next year, and the average exposure is expected to double within three years. The study, which interviewed senior executives from asset managers and asset owners, reveals that more than half of respondents expect between 10% and 24% of their portfolios to be tokenized by 2030, reflecting the growing confidence in blockchain-based solutions.
Tokenization, which converts traditional assets into digital versions, is expected to begin in private equity and fixed income. State Street, with $49 trillion under custody and $5.1 trillion under management, notes that 40% of institutions already have units dedicated to digital assets.
According to Chief Product Officer Donna Milrod, “Clients are reconfiguring their operating models around digital assets; the shift is strategic, not just technical.”
Among the main benefits, 52% of respondents cited increased transparency, 39% highlighted faster negotiations, and 32% mentioned reduced compliance costs. Almost half expect savings of over 40% by adopting digital infrastructure in their financial processes.
The survey also highlights the convergence of blockchain, generative artificial intelligence, and quantum computing. More than half of executives believe these technologies will have a significant joint impact on investment operations, increasing the efficiency and accuracy of financial decisions.
According to Joerg Ambrosius, president of investment services at State Street, “Institutional investors are moving beyond testing, and digital assets have become a strategic lever for growth, efficiency, and innovation.” He emphasized that the integration of blockchain, AI, and quantum computing will shape the future of global finance.
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