Institutional Digital Asset Exposure Set to Double by 2028 as Tokenization Accelerates, Says State Street
Global financial giant State Street has released with a projection that institutional exposure to digital assets will double by 2028. According to the report, this will be driven by the rapid rise of tokenization, real-world asset (RWA) integration, and evolving regulatory clarity.
The survey, which polled more than 100 leading asset managers and institutional investors, found that over 70% of respondents plan to increase their crypto exposure in the next three years, with many identifying tokenized funds, stablecoins, and (platform-traded funds) as the preferred investment vehicles.
Corporate Investors Are Doubling Down on Crypto Tokenization
State Street’s report underscores how far (TradFi) has come in embracing digital assets. What began as cautious experimentation has transformed into structured allocation strategies across banking, asset management, and pension fund portfolios.
In other words, the findings reflect a growing institutional consensus that blockchain-based assets are transitioning from speculative tools to core components of portfolio diversification. Among those surveyed, over 50% already hold some form of digital asset exposure, either directly or through managed funds. This marks a substantial increase from the previous years.
Institutions cited inflation hedging, cross-border efficiency, and tokenization of traditional securities as primary motivators. However, tokenization, the process of representing physical or financial assets like bonds, real estate, and commodities on blockchain networks, has emerged as the most anticipated growth driver.
State Street estimates that tokenized assets could account for $5 trillion in market value by 2030, transforming how capital markets operate. According to the report, “Tokenization is no longer a buzzword — it’s the bridge between legacy finance and the blockchain economy.”
The research also points to a steady migration of liquidity from traditional equities and bond markets toward regulated crypto investment vehicles, such as BTC and ETH ETFs, which are now available in major jurisdictions like the U.S., Hong Kong, and Australia. So, institutions globally now consider crypto as a way to hedge their funds, radically reduce settlement times, and increase liquidity.
Regulatory Progress Remains Crucial to Institutional Investors
State Street’s findings align with a broader macro shift observed across 2025: major institutions are moving from indirect crypto exposure (through equity in blockchain companies or mining firms) to direct digital asset holdings, including on-chain staking and tokenized fund shares.
However, much of the optimism for institutional allocations to BTC and ETH to grow by at least 200% by 2028 hinges on regulatory clarity progress. In the U.S., the Treasury’s recent clarification of tax rules and the SEC’s streamlining of have lowered entry barriers for institutional players.
Meanwhile, Europe’s framework and Asia’s growing adoption of stablecoin-friendly policies — as viewn in Singapore and Hong Kong — are setting the stage for more compliant, transparent on-chain finance. For full-scale adoption to become a reality, fragmented regulation, counterparty risk in DeFi, and limited custody answers must be turned around.
