In 2025, 83% of the institutional investors intend to increase their allocation of funds to crypto companies, according to a report from Coinbase and EY-Partthenon.
The report, that was published On March 18 on Coinbase’s blog, collected opinions of decision makers in 352 companies. It revealed that there is a growing conviction that cryptocurrency will continue to yield a strong return.
More than half (59%) of the plan surveyed to control at least 5% of their assets this year in digital assets. This shift indicates that crypto goes beyond its reputation as a niche investment and a nuclear component of institutional portfolios.
84% of investors use or consider using Stablecoins, which have received an enormous traction in the past year. Although Stablecoins have traditionally been used to facilitate cryptocurrency transactions, they are currently being investigated, among other things, for use in generating returns, foreignovers, cash management and payments.
Institutional interest in decentralized finances is also increasing. Although only 24% of the investors surveyed currently come into contact with Defi, that figure is expected to be 75% within two years. Many companies consider Defi as an opportunity to gain access to the loans, derivatives and deploying markets.
73% of the respondents said that she owns other assets than Bitcoin (BTC) and Ethereum (ETH), indicating that interest in altcoins is still high. Ripple (XRP) and Solana (SOL) are the most kept, and many investors consider a single-asset exchange-related products for Altcoins.
Even with optimism there are still obstacles to overcome. The most important concerns of investors are legal uncertainty (52%), market volatility (47%) and safe custody (33%). 68% of the respondents believe that more transparent regulations will contribute to future market expansion.
In a related development, on March 17, Securitize and Ethena Labs Converge launched a blockchain designed to support the institutional acceptance of Tokenized assets. Supported by leading companies such as Aave Labs, Pendle and Maple Finance, tries to connect the Ethereum-compatible network Defi and traditional finances by offering a regulated setting for Tokenized Activa.