State Street Says Institutions to Double Digital Asset Exposure by 2028

TLDR:

• Over half of global institutions expect 10–24% of their assets to be tokenized by 2030, led by private markets.
• Around 60% plan to increase digital asset allocations within a year, showing confidence in blockchain’s scalability.
• Forty percent of institutions already operate dedicated digital asset teams, with more preparing to follow.
• Transparency and faster trading are cited as top benefits, with cost savings projected at more than 40%.

Institutional investors are ramping up their commitment to blockchain and tokenized assets. A new global study from State Street shows that most major institutions plan to double their exposure to digital assets within three years. 

The research points to a broader structural shift in global finance, as tokenization moves from experimentation to strategy. The findings suggest that private markets may become the first frontier for large-scale blockchain adoption. The data comes from the bank’s 2025 Digital Assets Outlook, released this week.

Private Markets Lead the Tokenization Charge

According to the report, private equity and private fixed income are the first asset classes likely to be tokenized. Institutional investors appear focused on unlocking liquidity and reducing inefficiencies across traditionally illiquid markets. 

By 2030, over half expect between 10% and 24% of their total investments to exist as tokenized assets.

State Street’s research also found that nearly 60% of surveyed investors plan to raise their digital asset allocation within the next year. The shift reflects growing confidence in blockchain-based instruments as tools for efficiency and long-term growth.

Crypto news account Wu Blockchain summarized the data, highlighting that institutions now view tokenization as an operational priority, not just a speculative play. The report described the convergence of AI, blockchain, and quantum computing as a major catalyst for innovation in traditional finance.

Joerg Ambrosius, president of Investment Services at State Street, said the move toward digital assets represents a “strategic lever” for growth. His comments align with growing interest among asset managers in tokenized bonds, equities, and stablecoin-linked instruments.

Dedicated Teams Are Driving Institutional Blockchain Adoption

The survey showed that around 40% of institutional investors already have digital asset teams. Another 20% plan to establish dedicated blockchain divisions soon. These specialized groups are shaping operational models around tokenization, on-chain finance, and compliance automation.

Donna Milrod, State Street’s chief product officer, said clients are “rewiring” their operations to integrate digital asset frameworks. She pointed to tokenized bonds, CBDCs, and on-chain cash instruments as growing areas of focus.

Transparency, speed, and cost savings are driving adoption. Over half of respondents cited increased visibility as the biggest benefit, while others pointed to faster settlement times and reduced compliance costs. Some firms expect up to 40% cost savings from transparency-driven efficiencies alone.

The full 2025 Digital Assets Outlook by State Street paints a clear picture: tokenization is no longer a test case. It’s becoming the foundation for how institutions manage, trade, and store value in the next decade.

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