Institutional investors double down on crypto, State Street finds

A new report from State Street shows that nearly 60% of institutional investors plan to increase their crypto holdings in the next 12 months. These aren’t retail gamblers. They’re senior executives from asset management and asset ownership firms across multiple regions.

The data is from the company’s 2025 global research on digital assets and tech, and it reveals that traditional finance isn’t just dipping toes anymore. They’re diving headfirst.

According to the report, digital assets are no longer side experiments. They’re central to strategy. The study says the average institutional exposure to crypto will double within three years, showing growing comfort with tokenized products.

Joerg Ambrosius, president of Investment Services at State Street, said: “The acceleration in adoption of emerging technologies is remarkable. Institutional investors are moving beyond experimentation, and digital assets are now a strategic lever for growth, efficiency, and innovation.”

Institutions target tokenized private markets for early action

Private equity and private fixed income are first on the chopping block for tokenization. These assets, known for being slow and illiquid, are the main targets because institutions want to unlock speed and liquidity. State Street’s research shows most investors expect 10% to 24% of their portfolio to be tokenized by 2030.

The shift isn’t happening for fun. It’s about transparency and money. 52% of respondents say they want better visibility into their holdings. 39% want faster trades. And 32% want to cut down compliance costs. Nearly half of them think these changes will lead to over 40% in cost savings, mostly thanks to better transparency.

But the crypto overhaul doesn’t stop at assets. Operations are changing too. 40% of institutions now have a full-blown digital asset team or business unit. And nearly one in three say blockchain operations are already a core part of their transformation strategy.

Donna Milrod, chief product officer at State Street, said: “We’re seeing clients rewire their operating models around digital assets. Many are building dedicated teams, and nearly one in five plan to follow suit. From tokenized bonds and equities to on-chain wrappers, Central Bank Digital Currencies, stablecoins, and tokenized cash, the shift isn’t just technical—it’s strategic.”

And while crypto and tokenization are taking center stage, Generative AI and quantum computing are also moving in fast. Over half of the survey respondents believe these technologies will impact investment operations even more than blockchain or tokenization. But most don’t see it as a trade-off. They say it all works together. Quantum and AI will accelerate what’s already happening with digital assets.

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