APAC institutions more optimistic about digital asset adoption, State Street study finds
State Street has released findings from its 2026 Digital Assets Study, showing growing institutional confidence in the long-term future of digital assets, alongside increased focus on trust, cybersecurity, regulation and market infrastructure as global adoption accelerates.
The study found that APAC institutions expect digital asset adoption to outpace their global peers. 56% of APAC respondents expect on-chain digital asset investment to become mainstream within five years, compared with 51% globally. In addition, 32% expect at least a quarter of their assets to be tokenized over the same period, compared with 28% globally.
Operational readiness is also rising, suggesting the industry is moving beyond experimentation and into implementation. 33% of APAC respondents already manage or distribute digital assets, while another 39% have the provider relationships and infrastructure in place to respond to client demand, compared with 35% and 28%, respectively, globally.
“What stands out in APAC is the combination of growing confidence and operational readiness. Five years ago, most institutions were still deciding whether digital assets mattered. Greater regulatory guidance and clarity across the region are supporting optimism about mainstream adoption, with conversations now focused on infrastructure, operations, regulation and risk. That tells us the market is maturing,” said Angus Fletcher, Head of Digital Asset Solutions at State Street.
Cost reduction and efficiency were identified by 55% of APAC respondents as the greatest expected benefit of shifting to digital assets, followed by revenue growth (25%) and investment returns (20%). Respondents expect these benefits to come primarily from faster settlement, new client acquisition and increased liquidity.
ETFs are the leading vehicle for digital asset access and distribution. APAC leads all regions in current ETF use, with 76% of respondents already using them and a further 18% planning to do so.
Digital cash also emerged as a significant theme. Almost half of APAC respondents (49%) described it as very important to their digital asset strategy. Settlement of tokenized assets was identified as the leading use case (64%), while bank-issued US dollar stablecoins (48%) and tokenized deposits (47%) were identified as the preferred forms of digital cash.
“People often focus on tokenized securities, but settlement still requires a trusted form of money,” said Fletcher. “Digital cash preparedness currently trails broader digital asset readiness, but the institutions we surveyed are focusing on it, with most expecting to develop these capabilities within the next one to two years.”
The study found that institutional investors remain the primary target for APAC asset managers planning to distribute digital assets. 79% identify institutional investors as their main client base, compared with 45% targeting digitally native retail investors.
“As digital asset markets mature, long-term success will depend not on speed, but on resilience, interoperability, compliance and trust. To capture the opportunities ahead, APAC institutional investors need to build the foundations now, with institutional-grade controls and future-ready technology ahead of large-scale allocation shifts,” said Fletcher.
