Institutional investors are rapidly accelerating their shift toward blockchain adoption and asset tokenization, signaling a defining transformation in global finance, according to State Street’s 2025 Global Digital Assets Research.
The study reveals that traditional financial institutions are no longer experimenting with digital assets, they’re integrating them as core components of long-term growth, efficiency, and innovation strategies.
Based on a global survey of senior executives across asset management and asset ownership, State Street found that nearly 60% of institutions plan to increase their digital-asset allocations within the next year, while overall exposure is expected to double by 2028. This surge underscores growing institutional confidence that blockchain technology and tokenized assets will form a lasting foundation of modern investment portfolios.
Tokenization Leads the Institutional Shift
The report highlights private equity and private fixed income as the first markets likely to undergo large-scale tokenization. These traditionally illiquid asset classes are seen as prime candidates for blockchain-driven liquidity and operational efficiency. By 2030, most institutions expect 10–24% of their investments to be tokenized, showing just how deeply tokenization could reshape institutional finance.
Efficiency, Transparency, and Cost Reduction Drive Blockchain Adoption
Among the top benefits cited by institutional investors are greater transparency (52%), faster trading execution (39%), and lower compliance costs (32%). Nearly half of respondents anticipate cost savings exceeding 40% as blockchain infrastructure enhances trade settlement and reporting efficiency.
Financial Firms Build Dedicated Digital Asset Units
The report also shows that 40% of financial institutions now operate dedicated digital-asset teams, while nearly a third have made blockchain and tokenization integral to their broader digital transformation plans. “We’re seeing clients rewire their operating models around digital assets,” said Donna Milrod, Chief Product Officer at State Street. “From tokenized bonds and equities to CBDCs, stablecoins, and tokenized cash, the shift isn’t just technical – it’s strategic.”
Emerging Technologies Accelerate the Transition
Over half of surveyed executives view generative AI and quantum computing as complementary technologies that will accelerate blockchain’s institutional adoption. “As tokenization, AI, and quantum computing converge, early adopters are leading the way in shaping the future of finance,” said Joerg Ambrosius, President of Investment Services at State Street.
The Future of Institutional Blockchain Adoption
State Street’s 2025 report confirms that blockchain and tokenization are moving from innovation to implementation. With digital assets now viewed as strategic growth levers, the next wave of institutional finance is expected to be powered by tokenized markets, smart contracts, and AI-enhanced investment infrastructure, defining a new era for the global financial ecosystem.
