Institutional investors are moving past the test phase and into large -scale adoption of digital assets, according to new research from State Street released Thursday.
Outlook of the 2025 Digital Assets Outlook found that more than half of the examined institutions expect their exposure to digital assets to double over the next three years, signaling a growing comfort with blockchain-based investment tools.
The study, which collected input from senior leaders across asset management and asset ownership companies, points to the tokenization of private equity and fixed income as the most likely starting point.
Tokenization refers to the representation of assets, such as stocks and bonds, such as digital tokens that can be purchased, sold and traded on blockchains.
By 2030, a majority of respondents expect between 10% and 24% of their total portfolios to be tokenized. In practice, it could mean that investors who hold blockchain-based versions of traditional illiquid actively make it easier to shop or reassess them.
Transparency and operational efficiency drives the shift. Over half of the respondents quoted improved visibility in asset data as an important advantage, while others highlighted faster trade and reduced compliance costs. Almost one in two expects cost savings of at least 40% from the adoption of digital asset infrastructure.
The study also points to how new technologies converge. Many respondents see generative AI and quantum calculation as complementary tools that can further streamline investment operations.
State Street, which oversees $ 49 trillion in assets during custody, said 40% of institutions have now dedicated digital activists. “Customers enclose their operating models around digital assets,” said Donna Milrod, the company’s head of product manager. “The shift is not only technical – it’s strategic.”
