According to the report, based on a global survey of senior executives across asset management and asset ownership, digital assets and tokenization have moved from the “what if” stage to the “what’s next” stage. “Institutional investors are moving beyond experimentation,” said Joerg Ambrosius, president of Investment Services at State Street. “Digital assets are now a strategic lever for growth, efficiency, and innovation.”
Tokenization Takes Center Stage
One of the biggest takeaways from the report is the rapid rise of tokenization—the process of converting real‑world assets like private equity or bonds into digital tokens on a blockchain. Nearly 60% of institutional investors plan to increase their allocation to digital assets within a year, with average exposure expected to double in the next three.
Private equity and private fixed income are leading the charge. These traditionally hard‑to‑trade markets could soon see a wave of tokenized products that improve liquidity and transparency. By 2030, most respondents expect up to a quarter of institutional investments to be conducted through tokenized instruments.
Our 2025 global research on #digitalassets and emerging technologies reveals a decisive shift in adoption and strategic commitment among institutional investors toward #tokenization and blockchain‑enabled transformation. Read more: https://t.co/hzk1f3dZ1Opic.twitter.com/tULwI2Ke88
— State Street (@StateStreet) October 9, 2025
The benefits are tangible: 52% of respondents cite greater transparency, 39% faster trading, and 32% lower compliance costs as key drivers. Some even anticipate savings of more than 40% from automation and data clarity made possible through blockchain. Real‑world examples are already proving the trend. In 2024, JPMorgan executed a tokenized money market fund transaction on its Onyx blockchain platform, showing how large financial institutions are bringing real assets onto digital rails.
AI and Quantum Computing Push the Frontier
The study also highlights how artificial intelligence (AI) and quantum computing are accelerating digital transformation. More than half of respondents believe these technologies will impact investment operations even more than blockchain itself, though many see them as working hand in hand.
From blockchain infrastructure to tokenized #ETFs, the landscape of asset servicing and investment is undergoing a transformative shift. In our latest #DigitalDigest, buy‑side leaders at State Street explore how #DigitalAssets redefine liquidity, collateral and portfolio… pic.twitter.com/4Ho3skLmaW
— State Street (@StateStreet) September 29, 2025
According to Donna Milrod, State Street’s chief product officer, “We’re seeing clients rewire their operating models around digital assets. Many are building dedicated teams, and nearly one in five plan to follow suit.” Around 40% of institutions now have a digital asset business unit, reflecting how deeply this technology is reshaping financial infrastructure.