State Street Survey: Over 50% of Institutions to Double Crypto Holdings by 2028

Institutional investors are accelerating from pilot programs to full-scale digital asset adoption, reveals State Street's 2025 Digital Assets Outlook. The comprehensive study shows more than half of financial institutions plan to double their cryptocurrency exposure within three years, demonstrating growing confidence in blockchain investment vehicles. The research, surveying senior executives across asset management and ownership firms, identifies private equity and fixed income tokenization as primary entry points. Tokenization converts traditional assets like stocks and bonds into blockchain-based digital tokens for enhanced trading efficiency. Projections indicate that by 2030, most institutional portfolios will contain 10-24% tokenized assets. This transformation enables blockchain representation of traditionally illiquid assets, potentially revolutionizing valuation and trading processes. Key drivers include unprecedented transparency and operational improvements. Over 50% of institutions highlight superior asset data visibility, while others emphasize accelerated trading and 40%+ cost reductions in compliance expenses. Nearly half anticipate minimum 40% savings through digital infrastructure adoption. The convergence of emerging technologies presents additional opportunities, with respondents viewing generative AI and quantum computing as complementary solutions for investment operations optimization. State Street, custodian of $49 trillion assets, confirms 40% of institutions now maintain dedicated digital asset divisions. "Clients are fundamentally restructuring operating models around digital assets," stated Chief Product Officer Donna Milrod. "This represents a strategic transformation, not merely technical adoption."