Tokenized Assets to Make Up 24% of Institutional Portfolios by 2030, Report Reveals

Highlights:

• A recent report has shown that tokenized assets make up 10-24% of institutional investors’ portfolios by 2030.
• Almost 60% of institutional investors are willing to increase their exposure to digital assets this year.
• Approximately 40% of the research participants have formed teams, with a primary focus on digital assets.

One of the world’s leading financial giants, State Street, recently published its 2025 global research on digital assets and emerging technologies. The report showed significant turning points in institutional investors’ attitudes toward blockchain, tokenized assets, and other transformative technologies.

The report, surveying top executives from leading asset management and asset ownership firms, found that institutional investors no longer experiment with digital assets. Instead, they are now integrating these assets as a central part of their long-term growth and expansion strategies.

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/hzk1f3dZ1O pic.twitter.com/tULwI2Ke88

— State Street (@StateStreet) October 9, 2025

Research Findings

The report revealed that nearly 60% of institutional investors are willing to increase their digital asset exposure in 2025, with average allocations expected to double within three years. Their choices reinforce growing confidence in blockchain-based investments and their roles in modern crypto portfolios.

Meanwhile, 40% of institutional investors now have teams dedicated to digital assets, while one-third have integrated blockchain into their broader digital transformation strategies. The research participants cited three key reasons for their interest in digital assets. Greater transparency topped the list at 52%. Others were quicker trading speed at 39% and lower compliance costs at 32%. The respondents believe that these features could cut costs by over 40%, offering a strong incentive for financial institutions managing complex portfolios.

Institutional Investors Bet Big on Tokenized Assets, AI, and Quantum Computing

One of the most notable insights from the report is on tokenized assets. According to the publication, private equity and private fixed income will be among the early asset classes to undergo tokenization. This is a process that converts traditional financial assets into digital tokens on the blockchain.

State Street said most institutional investors expect their digital asset exposure to double within three years, with over half anticipating that 10–24% of investments will be tokenized by 2030. The bank noted that private equity and private fixed income assets will be the first…

— Wu Blockchain (@WuBlockchain) October 10, 2025

The report also estimates that 10-24% of institutional investments will be converted into tokenized assets by 2030. This will open the door to greater liquidity and operational efficiency in markets that have long been considered illiquid. Beyond digital assets, the study emphasizes that generative Artificial Intelligence (AI) and quantum computing will further transform financial operations.

Over 50% of the research participants believe these emerging technologies will have a greater impact on investment operations than tokenization or blockchain alone. Hence, they envisage them as complementary tools that will drive the shift towards a digitalized financial system.

Reacting to the research findings, Donna Milord, the chief product officer at State Street, stated:

“Many are building dedicated teams, and nearly one in five plan to follow suit. From tokenized bonds and equities to on-chain wrappers, Central Bank Digital Currencies, stablecoins, and tokenized cash, the shift isn’t just technical—it’s strategic.”

Interests in Tokenized Assets Continue to Rise

On October 7, Crypto2Community reported that BNY Mellon, the world’s largest custodian bank, is piloting tokenized deposits. The move will enable clients to transfer funds instantly, modernizing real-time and cross-border payments. As part of efforts to implement tokenized deposits, BNY Mellon partnered with Goldman Sachs to track the records of tokenized money market funds.

On October 2, Wallet in Telegram partnered with Kraken and Backed to introduce tokenized US equities via the xStocks platform. The rollout started this month with 35 tokenized assets that could reach 60 by the end of 2025. The initial launch will begin inside the custodial Wallet in Telegram before expanding to the self-custodial Wallet later this year.