State Street Report: 60% of Institutional Investors Plan to Boost Digital Asset Allocation Within a Year

Key Takeaways:State Street’s 2025 Digital Asset Outlook found that 60% of institutional investors plan to increase their digital asset exposure over the next 12 months.More than half expect their digital asset allocations to double within three years, highlighting accelerating institutional adoption.Tokenized private markets—particularly private equity and fixed income—are viewed as the first major wave of blockchain integration.By 2030, a majority of respondents expect 10–24% of portfolios to be tokenized.Transparency and cost efficiency remain the top drivers, with nearly half anticipating 40% cost savings through blockchain-based infrastructure.Institutional Interest in Digital Assets Surges, Says State StreetAccording to State Street’s 2025 Digital Asset Outlook, institutional investors are rapidly expanding their exposure to cryptocurrencies and tokenized assets.The report, released on October 9 and cited by TechFlow, revealed that six in ten institutional investors plan to increase digital asset allocations within the next year, while over half expect to double their exposure in three years.This marks one of the strongest signals yet that digital assets are becoming a core part of institutional portfolio strategies, particularly as regulatory clarity improves and tokenization technology matures.Tokenized Private Markets Lead the Next Wave of AdoptionThe report identifies tokenized private markets as the primary frontier for blockchain adoption. Investors believe private equity and fixed income markets will be the first to benefit from tokenization, enabling faster settlement, greater transparency, and improved liquidity for traditionally illiquid assets.By 2030, most respondents expect 10% to 24% of their portfolios to be fully tokenized, underscoring the scale of digital transformation underway across global capital markets.Efficiency and Transparency Drive AdoptionState Street’s survey found that transparency and operational efficiency are the leading motivations behind tokenization initiatives.Over 50% of investors cited enhanced asset visibility as a key benefit.Nearly half said they expect to cut operational costs by 40% or more through blockchain-based infrastructure.40% of institutions have already set up dedicated digital asset teams or departments, signaling deep organizational commitment.Institutional Integration AcceleratesThe findings align with a broader industry trend toward institutional-grade digital infrastructure, including custody solutions, tokenization platforms, and regulated blockchain networks.As global asset managers, including State Street, Fidelity, and BlackRock, expand into tokenized funds and stablecoin-based settlement, institutional digital adoption is expected to accelerate sharply through 2026.