State Street to Double Its Institutional Digital Asset Investments

According to State Street's new report, institutional investors plan to double their digital asset investments over the next three years. The global finance giant State Street highlighted the increasing interest of institutional investors in blockchain and tokenization technologies in its 2025 Digital Asset Outlook report.

According to the report, a large portion of participants aim to increase their average digital asset exposure twofold within the next three years. Boston-based State Street, which manages $49 trillion in assets, thoroughly examined the approach, strategies, and operational preparedness of senior fund managers and asset owners towards digital assets.

Approximately 60% of participants indicated their plans to increase digital asset investments in the coming year, reflecting heightened confidence that blockchain-based assets are becoming a permanent investment strategy. Particularly, tokenization is expected to account for double-digit shares in institutional investments by 2030.

The report reveals that over half of the participants anticipate that by 2030, 10% to 24% of institutional investments will be tokenized. Private equity and fixed-income private investments are highlighted as pioneering areas for tokenization due to their potential to enhance liquidity and increase efficiency. Investors cited transparency, fast transaction times, and low compliance costs as the most significant factors in the adoption of digital assets.

Nearly half of the participants expressed that they expect cost savings of over 40% due to digitization. State Street's Product Director, Donna Milrod, stated, “Our clients are now reshaping their operational models around digital assets. This transformation, from tokenized bonds to stablecoins, is not just a technical shift but also a strategic one.”

The company's Head of Investment Services, Joerg Ambrosius, noted that artificial intelligence and quantum computing might be more effective than tokenization, but emphasized that these technologies are complementary to one another. Ambrosius expressed, “Institutional investors have moved past the experimentation phase; digital assets have become the fundamental lever for growth, efficiency, and innovation.”