Majority of Institutions Expect to Double Digital Asset Exposure by 2028: State Street

According to new research from State Street, a significant shift among institutional investors towards digital assets is underway, moving from the testing phase to large-scale adoption. The survey revealed that over half of the institutions expect their digital asset exposure to double in the next three years. Key areas of growth include the tokenization of private markets, particularly in private equity and fixed income, which is anticipated to begin driving blockchain adoption. By 2030, many respondents expect that 10% to 24% of their portfolios will be in tokenized assets. This shift is motivated by benefits such as enhanced visibility into asset data, faster trading, and reduced compliance costs, with nearly half predicting cost savings of at least 40%. Additionally, there is recognition of emerging technologies, such as AI and quantum computing, as valuable tools for streamlining investment operations. As of now, 40% of institutions operate dedicated digital asset units, underscoring a strategic transformation alongside technological advancements.

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