What happened? Institutional investors now expect tokenized assets to become a meaningful part of portfolios by 2030.
State Street’s research finds institutions think 10–24% of investments could be made through tokenized instruments by 2030, and digital assets are already averaging 7% of portfolios today with expectations to rise to 16% in three years. Private equity and private fixed income are the most likely early targets because they suffer from illiquidity and high operating costs. Firms also see tokenization combining with AI and other emerging tech, shifting digital assets from experimentation to a strategic tool.
Who does this affect? Asset managers, institutional investors and anyone involved in private markets and infrastructure services.
Asset managers report higher exposure to cryptocurrencies and tokenized assets than asset owners, meaning managers are leading adoption and taking more risk. Investors in private markets—real estate, private credit, private equity—stand to benefit as tokenization can unlock liquidity and broaden access. Custodians, trading platforms, compliance teams and regulators will also be affected as demand grows for secure infrastructure and clear rules.
Why does this matter? It could reshape market structure, liquidity and the economics of servicing assets.
Tokenization can cut settlement times, reduce operational costs and open up secondary markets for previously illiquid assets, boosting overall market efficiency. If a significant share of portfolios becomes tokenized, demand for blockchain infrastructure, custody, and regulatory clarity will surge, shifting revenue opportunities toward tech-enabled service providers. That could reprice private assets, change how returns are sourced, and create new trading and risk dynamics that investors and regulators must manage.