Over the next three years, a majority of institutional investors plan to significantly increase digital asset allocations, and more than 50% expect tokenized assets to make up 10-24% of total investments by 2030, according to State Street’s 2025 Digital Assets and Emerging Technology 0 report, which surveyed senior executives across asset management and ownership firms, reveals that digital assets are steadily moving from experimental holdings to mainstream components of institutional 1 Portfolio Changes Currently, the average institutional portfolio allocates approximately 7% of assets to digital instruments, including cryptocurrencies, digital cash, and tokenized versions of listed equities or fixed 2 three years, target allocations are expected to reach 16%.
Digital cash and tokenized public and private securities are emerging as the most common forms of exposure, with respondents holding an average of 1% in each 3 managers, in particular, show deeper engagement with digital assets than asset 4 are twice as likely to hold 2-5% of their portfolios in Bitcoin, and slightly more likely to allocate 5% or 5 allocations among managers also outpace those of owners, with three times as many managers holding at least 5% of their 6 top that, 6% of asset managers report at least 5% of their portfolios in smaller cryptocurrencies, meme coins, and NFTs, compared with just 1% of asset owners, which indicates early experimentation with emerging digital 7 Boom Ahead Tokenization of real-world assets has also seen increased 8 report more exposure to tokenized public assets (6% versus 1%), private assets (5% versus 2%), and digital cash (7% versus 2%).
By 2030, over half of respondents expect between 10% and 24% of their total portfolios to be held in tokenized or digital assets, in a major strategic pivot toward blockchain-enabled instruments, although few anticipate that most investments will be fully 9 stablecoins and tokenized assets comprising the largest portion of allocations, cryptocurrencies continue to drive the bulk of 10 than a quarter of respondents cited Bitcoin as the top performer within their digital holdings, while Ethereum followed 11 public and private assets currently contribute less to returns, though their role is expected to grow gradually as markets 12 Street’s study also reveals a longer-term 13 found that private assets are seen as the likely first major beneficiary of broader tokenization, and most institutions foresee digital assets becoming a mainstream part of portfolios within the next 14 is growing, but institutions are careful and are focusing on strategy, efficiency, and compliance.
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