Institutional interest in cryptocurrencies continues to grow, moving beyond initial pilot programs toward full strategic implementation, according to State Street’s Digital Assets Outlook 2025. A global survey of 324 senior executives shows that institutions plan to double their cryptocurrency investments over the next three years, with nearly 60 percent considering increasing their exposure by the end of this year. Joerg Ambrosius, head of investment services at State Street, highlighted that the combination of tokenization, artificial intelligence, and quantum computing is accelerating this transformation.
The study indicates that digital integration is expected to be fully implemented by 2025, with portfolio management and custody services now actively incorporating cryptocurrencies into governance, compliance, and operational workflows. Around 40 percent of institutions have officially adopted cryptocurrencies, and one in three has fully integrated blockchain into their broader digital strategy. Key benefits cited include improved transparency, faster transactions and settlements, and lower compliance costs, with nearly half of respondents suggesting that increased transparency alone could reduce costs by 40 percent or more.
Private equity and debt markets are the first areas targeted for tokenization, aiming to address liquidity gaps, automate operations, and simplify settlements. By 2030, most participants expect tokenized assets to make up 10 to 24 percent of their portfolios, providing efficiency gains across fund lifecycle management and secondary market access.
Artificial intelligence and quantum computing are seen as critical technology accelerators, complementing blockchain by improving scalability, risk modeling, and data validation layers, and further solidifying the adoption of tokenization in capital markets.