State Street "Institutional investors expect to double digital asset allocations within 3 years"

According to a survey conducted by global asset manager State Street, institutional investors worldwide are expected to more than double their allocation to digital assets (including cryptocurrencies) within the next three years.

On the 9th (local time), according to crypto-focused media The Block, State Street's report 'State Street Digital Assets Outlook 2025' found that about 60% of respondents said "they plan to increase their digital asset holdings next year." The overall average investment exposure is predicted to double within three years.

More than half of respondents expect 10–24% of total assets to be tokenized by 2030. Also, 40% of institutional investors already have a dedicated digital assets unit, and one in three view blockchain technology as a core digital transformation strategy.

In particular, private asset markets with low liquidity, such as private equity and private debt, were cited as primary entry points for tokenization. Investors cited increased transparency (52%), improved transaction speed (39%), and reduced compliance costs (32%) as key benefits of adopting digital assets, and nearly half said "operating costs will be cut by more than 40%."

Donna Milrod, State Street's Chief Product Officer (CPO), said, "Clients are restructuring their operating models around digital assets," adding, "The shift to tokenized bonds and equities, stablecoins, and the like is underway."

Joerg Ambrosius, head of State Street's Investment Services division, said, "With the convergence of innovations such as tokenization, generative AI, and quantum computing, institutional investors have moved beyond the experimental phase into full strategic adoption," adding, "Early adopters are already redefining the structure of finance in the future."

State Street, founded in 1792, is a global financial institution that currently holds approximately $49 trillion in custody and administration and, through its subsidiary asset managers, manages about $5.1 trillion in assets.