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

State Street's newly released 2025 Digital Assets Outlook reveals a significant inflection point in institutional cryptocurrency and blockchain adoption. The research, conducted among senior executives across asset management and asset ownership firms, documents a fundamental shift from experimental testing toward mainstream integration of digital assets into institutional portfolios. Current digital asset exposure averages 7% across surveyed institutions and is projected to reach 16% by 2028—a doubling in less than three years—with more than half of respondents explicitly expecting this expansion.

The survey identifies tokenization of private equity and fixed income as the most probable entry point for large-scale blockchain adoption. Tokenization converts traditional assets such as stocks and bonds into digital tokens tradable on blockchains, with the potential to dramatically improve liquidity and operational efficiency in historically illiquid markets. By 2030, a majority of respondents anticipate that tokenized assets will represent between 10% and 24% of their total portfolio allocations, a substantial reallocation that reflects genuine conviction regarding blockchain infrastructure maturity and regulatory clarity.

Transparency and operational efficiency emerge as primary motivators for the shift. Over half of surveyed institutions prioritize improved visibility into asset data, while others emphasize faster settlement and trading capabilities alongside reduced compliance overhead. Nearly one in two respondents project cost savings of at least 40% from adopting digital asset infrastructure, a material efficiency gain that justifies capital expenditure and organizational restructuring. Additionally, respondents increasingly view generative AI and quantum computing as complementary technologies capable of further streamlining investment operations and enhancing portfolio optimization.

State Street's position as a global custody leader—overseeing $49 trillion in assets under custody—lends significant credibility to these findings. The fact that 40% of surveyed institutions now maintain dedicated digital asset units underscores the infrastructure maturation occurring across the asset management industry. This infrastructure development represents a critical enabler for institutional-scale digital asset adoption, as custody, settlement, and regulatory compliance become increasingly standardized and accessible to mainstream market participants. The survey results collectively suggest that institutional digital asset allocation is transitioning from strategic exploration to normalized operational practice within the next three to five years.