Key Takeaways
- • State Street's 2026 Digital Assets Study, surveying 300 senior executives at asset managers, asset owners and wealth managers across North America, Europe, Asia Pacific, the Middle East and Latin America (fielded July 20 to August 19, 2026), found 51% expect digital assets to become mainstream within five years, up from 42% in 2025 and 11% in 2024.
- • Regulatory experience was the top provider selection criterion, cited by 69% of respondents, ahead of cybersecurity at 54% and financial strength at 47%.
- • Average digital asset allocations stand at approximately 11% and are expected to reach 17% over the next three years, versus 7% rising to 16% in the 2025 study.
- • Digital cash is emerging as a core strategic theme: 45% call it very important to their digital asset strategy, and 46% expect to use it within 12 months, though only 24% currently do or are prepared to.
- • Fund issuance and tokenization is the leading strategic priority (52%), and 84% of respondents planning product distribution intend to offer tokenized versions of existing products.
Summary
State Street Corporation (NYSE: STT) released findings from its 2026 Digital Assets Study, reporting that institutional investors are growing more confident in the long-term future of digital assets while placing greater weight on trust, cybersecurity, regulation and market infrastructure as adoption scales. The study surveyed 300 senior executives from asset managers, asset owners and wealth managers across several regions, with fieldwork conducted between July 20 and August 19, 2026.
According to the research, 51% of respondents expect digital assets to become mainstream within five years, if they have not already, up from 42% in 2025 and 11% in 2024. Only 3% believe digital assets will never become mainstream. Operational readiness is also rising: 35% of respondents already manage or distribute digital assets, and another 28% have the provider relationships and infrastructure in place to do so if client demand emerges.
Selection criteria for service providers reflect the shift in priorities. Experience operating within an appropriate regulatory framework was cited by 69% of respondents as the most important characteristic, followed by cybersecurity (54%) and financial strength (47%). Respondents expect the greatest material impact in custody (66%), payments (54%) and fund issuance (51%). Cost reduction and efficiency were identified as the largest expected benefit by 53%, with faster settlement (67%), new client acquisition (58%) and increased liquidity (53%) also cited.
Digital cash emerged as a major theme. Settlement of tokenized assets was the leading use case (64%), while bank-issued US dollar stablecoins (49%) and tokenized deposits (48%) were identified as preferred forms of digital cash. Angus Fletcher, head of Digital Asset Solutions at State Street, said the conversation has become more practical, with investors focusing on infrastructure, operations, regulation and risk. Donna Milrod, chief product officer at State Street, noted that settlement still requires a trusted form of money and that digital assets and digital cash are developing together.
Other findings include average allocations of roughly 11% rising to 17% within three years, with approximately 82% of asset managers planning to distribute digital assets to institutional investors. 57% described artificial intelligence as critical or very important to their digital asset operations. Nearly one in five respondents believe a fully on-chain market structure will never replace the current hybrid model of traditional and digital infrastructure. The study is State Street's own research and reflects its strategy around tokenization, digital cash and supporting infrastructure.
According to the research, 51% of respondents expect digital assets to become mainstream within five years, if they have not already, up from 42% in 2025 and 11% in 2024. Only 3% believe digital assets will never become mainstream. Operational readiness is also rising: 35% of respondents already manage or distribute digital assets, and another 28% have the provider relationships and infrastructure in place to do so if client demand emerges.
Selection criteria for service providers reflect the shift in priorities. Experience operating within an appropriate regulatory framework was cited by 69% of respondents as the most important characteristic, followed by cybersecurity (54%) and financial strength (47%). Respondents expect the greatest material impact in custody (66%), payments (54%) and fund issuance (51%). Cost reduction and efficiency were identified as the largest expected benefit by 53%, with faster settlement (67%), new client acquisition (58%) and increased liquidity (53%) also cited.
Digital cash emerged as a major theme. Settlement of tokenized assets was the leading use case (64%), while bank-issued US dollar stablecoins (49%) and tokenized deposits (48%) were identified as preferred forms of digital cash. Angus Fletcher, head of Digital Asset Solutions at State Street, said the conversation has become more practical, with investors focusing on infrastructure, operations, regulation and risk. Donna Milrod, chief product officer at State Street, noted that settlement still requires a trusted form of money and that digital assets and digital cash are developing together.
Other findings include average allocations of roughly 11% rising to 17% within three years, with approximately 82% of asset managers planning to distribute digital assets to institutional investors. 57% described artificial intelligence as critical or very important to their digital asset operations. Nearly one in five respondents believe a fully on-chain market structure will never replace the current hybrid model of traditional and digital infrastructure. The study is State Street's own research and reflects its strategy around tokenization, digital cash and supporting infrastructure.
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