According to global research on digital assets and emerging technologies conducted by State Street, a major financial services provider, a clear shift is emerging in terms of adoption and strategic commitment by institutional investors towards tokenization and blockchain-led transformation.
The research highlights how digital assets are playing a strategic role in institutional portfolios, with an increase in dedicated teams. Transparency and speed are the main advantages in adopting the tokenization process which favors private markets.
State Street releases 2025 Digital Assets Outlook
The study on digital assets and emerging technologies, based on a global survey conducted among senior executives of asset managers and asset owners, analyzes sentiment, strategy and level of operational preparation in the different geographical areas and types of institutions.
“The acceleration in the adoption of emerging technologies is truly remarkable. Institutional investors are moving beyond the experimentation phase, and digital assets are now a strategic lever for growth, efficiency and innovation,” said Joerg Ambrosius, President of Investment Services at State Street. “Early adopters are driving the transformation of the future of finance through the convergence of tokenization, artificial intelligence and quantum computing.”
Strategic role in institutional portfolios
Institutional investors are reporting a dramatic shift in the way they engage with digital assets. Almost 60% – highlights the research – plan to increase their allocation over the next year, and the average exposure is destined to double in three years. This dynamic reflects a growing confidence in digital assets as part of a long-term investment strategy.
40% of institutional investors – State Street reports – already have a team or business unit dedicated to digital assets, and almost a third say that digital operations (for example based on blockchain) are now an integral part of the organization’s overall digital transformation strategy.
Transparency and speed
Greater transparency (52%), faster trading (39%) and reduced compliance costs (32%) are among the main benefits cited, according to the research. Nearly half of those surveyed expect savings of more than 40% through greater transparency and process automation.
Tokenization of private markets and accelerators
State Street specifies that the first asset classes affected by the tokenization process will be Private Equity and Private Fixed Income. This reflects a strategic focus by institutional investors to unlock liquidity and efficiency in traditionally illiquid markets.
By 2030, the research adds, the majority of respondents expect that between 10% and 24% of institutional investments will be made through tokenized instruments.
Over half of those surveyed believe that GenAI and Quantum Computing will have an even more profound impact on investment operations than tokenization and blockchain. However, most consider these technologies complementary to digital asset programs.
New operating models
“Our customers are redefining their operating models around digital assets,” said Donna Milrod, Chief Product Officer at State Street. “Many are already building dedicated teams, and nearly one in five plan to do so soon. From tokenized bonds and stocks to on-chain wrappers, from central bank digital currencies to stablecoins and tokenized liquidity – this shift is not just technical, but strategic.”
