Institutional investors expand digital asset exposure

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…