Tokenized Tomorrow: Inside State Street’s 2025 Outlook
A financial revolution is taking shape. According to State Street’s newly released 2025 Digital Assets Outlook, institutional investors are no longer just exploring blockchain and tokenization – they’re betting big.
Within the next three years, many players expect their exposure to digital assets to double, and by 2030, up to a quarter of their portfolios could be tokenized.
State Street’s global survey of senior executives across asset management and asset ownership reveals a decisive pivot in strategy. Nearly 60 percent of institutional investors plan to boost their digital asset allocation in the next year, signaling growing confidence that blockchain-backed investments are more than a passing trend.
«As tokenization, AI, and quantum computing converge, early adopters are shaping the future of finance,» said Joerg Ambrosius, President of Investment Services at State Street.
Tokenization Takes Center Stage
Private markets are set to lead the charge. Private equity and private fixed income are expected to be the first asset classes transformed through tokenization – unlocking long-sought liquidity and operational efficiency.
By 2030, a majority of institutions anticipate 10–24 percent of their investments will exist in tokenized form, ushering in a new standard for how capital is deployed and traded.
Why the Momentum? Transparency, Speed, and Savings
For many institutions, the appeal of digital assets goes beyond hype – it’s about measurable benefits. The top drivers cited include increased transparency (52 percent), faster trading (39 percent), and lower compliance costs (32 percent).
Nearly half expect cost savings of more than 40 percent thanks to blockchain-enabled transparency and automation.
Building the Digital Core
The institutional transformation is organizational as much as technological. Four in ten firms now have dedicated digital asset teams, while nearly a third say blockchain and digital operations are central to their broader digital transformation strategy.
«We’re seeing clients rewire their operating models around digital assets,» said Donna Milrod, Chief Product Officer at State Street. «From tokenized bonds and equities to stablecoins and CBDCs, the shift isn’t just technical – it’s strategic.»
GenAI and Quantum Computing: The Next Frontier
Emerging technologies are amplifying this evolution. Over half of survey respondents believe generative AI and quantum computing will have an even greater operational impact than tokenization itself – though most view these tools as complementary forces accelerating innovation in digital asset infrastructure.
State Street’s 2025 Outlook underscores a defining moment for global finance. As tokenization merges with AI, blockchain, and quantum computing, the world’s largest investors are preparing for a digitally native financial ecosystem – one that promises greater efficiency, liquidity, and intelligence than ever before.
