State Street Issues 2025 Digital Assets Outlook: Institutions Double Down on Tokenization
- Majority of institutional investors expect their digital asset exposure to double within three years, with over half anticipating 10–24% of investments to be tokenized by 2030.
State Street today published its 2025 global research on digital assets and emerging technologies, revealing a decisive shift in adoption and strategic commitment among institutional investors toward tokenization and blockchain-enabled transformation. The study, based on a global survey of senior executives across asset management and asset ownership1, captures sentiment, strategy, and operational readiness across regions and institution sizes.
"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," said Joerg Ambrosius, president of Investment Services at State Street. "As tokenization, AI, and quantum computing converge, early adopters are leading the way in shaping the future of finance."
Key Takeaways:
Digital Assets Gain Strategic Ground Across Institutional Portfolios:
- Institutional investors are signaling a decisive shift in how they approach digital assets. Nearly 60% plan to increase their allocation in the coming year, and average exposure is expected to double within three years. This momentum reflects growing confidence in digital assets as a long-term investment strategy.
Tokenization of Private Markets is First Stop:
- Private equity and private fixed income are projected to be the first asset classes to undergo tokenization. This reflects a strategic focus among institutional investors on unlocking liquidity and efficiency in traditionally illiquid markets. By 2030, a majority expect 10–24% of institutional investments to be executed through tokenized instruments.
Transparency and Speed Among the Benefits Driving Adoption:
- Increased transparency (52%), faster trading (39%), and lower compliance costs (32%) are the top benefits of digital assets cited. Nearly half anticipate cost savings exceeding 40% due to increased transparency.
The Rise of Digital Asset Units:
- 40% of institutional investors have a dedicated digital assets team or business unit, and nearly a third say digital operations (e.g., blockchain) are now integral to their organization's wider digital transformation strategy.
GenAI and Quantum Computing Are Accelerators:
- Over half of respondents believe generative AI and quantum computing will be more impactful on investment operations than tokenization or blockchain, but most see these technologies as complementary to digital asset programs.
"We're seeing clients rewire their operating models around digital assets," said Donna Milrod, chief product officer at State Street. "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."
Click here to learn more about the research and to download the report.
About State Street Corporation
State Street Corporation (NYSE:STT) is one of the world's leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $49.0 trillion in assets under custody and/or administration and $5.1 trillion* in assets under management as of June 30, 2025, State Street operates globally in more than 100 geographic markets and employs approximately 52,000 worldwide. For more information, visit State Street's website at www.statestreet.com.
*Assets under management as of June 30, 2025 includes approximately $116 billion of assets with respect to SPDR® products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Investment Management are affiliated. |
1 324 respondents participated in the survey (State Street Digital Asset Survey 2025, Regional Analysis, September 2025).
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