In 2025, 83% of institutional investors plan to increase their allocation of funds to crypto holdings, according to a report by Coinbase and EY-Parthenon.
The report, which was published on Mar. 18 on Coinbase’s blog, collected opinions from decision-makers in 352 companies. It revealed that there is a growing belief that cryptocurrency will continue to yield strong returns.
Over half (59%) of those surveyed plan to allocate at least 5% of their assets under management to digital assets this year. This shift signals that crypto is moving beyond its reputation as a niche investment and is becoming a core part of institutional portfolios.
84% of investors are either using or considering using stablecoins, which have gained massive traction in the past year. Although stablecoins have historically been used to facilitate cryptocurrency transactions, they are currently being explored for use in yield generation, foreign exchange, cash management, and payments, among other areas.
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Institutional interest in decentralized finance is rising as well. While only 24% of surveyed investors currently engage with DeFi, that figure is expected to reach 75% within two years. Many businesses view DeFi as a chance to gain access to the lending, derivatives, and staking markets.
73% of respondents said they own assets other than Bitcoin (BTC) and Ethereum (ETH), indicating that interest in altcoins is still high. Ripple (XRP) and Solana (SOL) are the most commonly held, and many investors are considering single-asset exchange-traded products for altcoins.
Even with the optimism, there are still obstacles to overcome. Investors’ top concerns are regulatory uncertainty (52%), market volatility (47%), and secure custody (33%). 68% of respondents believe that more transparent regulations will contribute to future market expansion.
In a related development, on Mar. 17, Securitize and Ethena Labs launched Converge, a blockchain designed to support institutional adoption of tokenized assets. Backed by leading companies like Aave Labs, Pendle, and Maple Finance, the Ethereum-compatible network seeks to connect DeFi and traditional finance by offering a regulated setting for tokenized assets.
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