Bitcoin News Today: Institutions Double Digital Exposure by 2028 as Blockchain Reshapes Finance

Institutional investors are accelerating their digital asset strategies, with nearly half of surveyed institutions planning to double their exposure to Bitcoin and other cryptocurrencies by 2028, according to a 2025 report by State Street. The custody giant's research highlights a strategic shift toward blockchain-based assets, driven by operational efficiencies, transparency, and the tokenization of traditional financial instruments. Over 60% of institutions surveyed expect to increase digital allocations within the next year, with 40% already establishing dedicated digital asset units.

Tokenization is emerging as a key catalyst. By 2030, more than half of institutions anticipate that 10–24% of their portfolios will include tokenized assets, particularly in private equity and fixed income. Tokenization, the process of converting real-world assets into blockchain-based tokens, enables faster settlement, reduced compliance costs, and enhanced liquidity. Nearly half of respondents cited potential cost savings exceeding 40% from adopting digital infrastructure. State Street's chief product officer, Donna Milrod, emphasized that clients are "rewiring operating models around digital assets," with projects spanning tokenized bonds, equities, and stablecoins.

Bitcoin remains a central pillar of digital returns. Approximately 27% of institutions currently attribute the highest returns in their portfolios to Bitcoin, with a similar proportion expecting it to maintain top performance over the next three years. Stablecoins and tokenized real-world assets dominate institutional holdings, but traditional cryptocurrencies continue to drive profitability. The research also noted that while tokenization is gaining traction, most institutions remain cautious about its pace of adoption. Only 1% anticipate tokenized assets to dominate portfolios by 2030, though steady progress is expected as infrastructure and regulations mature.

Regulatory clarity is a critical enabler. The U.S. GENIUS Act, enacted in July 2025, and the EU's MiCA framework are reshaping the landscape by providing legal certainty for stablecoins and tokenized assets. These frameworks require 1:1 reserves for stablecoins and harmonize compliance standards, reducing fragmentation and fostering cross-border adoption. The OECD's 2025 policy paper underscored that while tokenization remains experimental, institutional interest is growing, with initiatives like Switzerland's Project Helvetia and the UK's Digital Securities Sandbox demonstrating early success.

BlackRock, JPMorgan, and other financial giants are already piloting tokenized bonds and Treasuries, signaling a shift toward blockchain-based finance. Meanwhile, U.S. regulators and industry leaders anticipate that tokenized assets could reach $16 trillion by 2030, driven by demand for efficiency and transparency. The OECD warned, however, that challenges such as regulatory uncertainty, infrastructure gaps, and legal ambiguities must be addressed to unlock tokenization's full potential.

The institutional push into crypto is reshaping global capital markets. As DeFi platforms and smart contract protocols expand, the ecosystem is creating new revenue streams for asset managers and custodians. For example, tokenized U.S. Treasuries-currently valued at $4 billion-could grow to $28 billion under a bullish scenario, fueled by yield-seeking stablecoin holders and institutional demand.

State Street's findings reflect a broader trend: digital assets are transitioning from experimental tools to strategic assets. "Digital assets are no longer theoretical-they're operational," said Joerg Ambrosius, State Street's president of Investment Services. As institutions double down on crypto and tokenization, the financial system is poised for a structural transformation, with blockchain technology redefining liquidity, settlement, and market access.

Source: [1] Coindesk (https://www.coindesk.com/business/2025/10/09/institutional-investors-expect-tokenization-to-double-digital-asset-exposure-by-2028-state-street-says) [2] Bitcoin Magazine (https://bitcoinmagazine.com/business/institutions-plan-to-double-bitcoin-and-crypto-exposure-by-2028-state-street-research-finds) [3] InvestorPlace (https://investorplace.com/hypergrowthinvesting/2025/10/from-ai-to-tokenization-the-next-megatrend-investors-shouldnt-ignore/) [4] Forbes (https://www.forbes.com/sites/digital-assets/2025/01/26/the-future-of-tokenization-insights-from-the-oecd/) [5] Keyrock (https://keyrock.com/the-great-tokenization-shift-2025-and-the-road-ahead/) [7] World Economic Forum (https://www.weforum.org/stories/2025/09/us-genius-act-eu-mica-convergence-crypto-rules/)