Institutions set to boost digital asset allocations to 16% by 2028: State Street

A global survey finds investors are deepening exposure to blockchain and AI, though many remain skeptical that decentralized finance will take over traditional markets.

Institutional investors are deepening their involvement in digital assets and emerging technologies such as blockchain and AI, according to a new State Street report — though many remain split on whether decentralized finance can ever fully blend with traditional markets.

The study found that digital assets currently make up about 7% of institutional portfolios, a figure expected to climb to 16% by 2028.

Most holdings are concentrated in digital cash (stablecoins) and tokenized versions of listed equities or fixed income, with respondents allocating about 1% of their portfolios to each and asset managers maintaining greater exposure.

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