SBI DAH: Growth of Institutional Demand for Digital Assets

DOWNLOAD SBI Digital Asset Holdings’ Report: “Growth of Institutional Demand for Digital Assets”

A digital revolution is taking over the finance landscape. Decentralised technologies and digital currencies are reshaping the future of finance, challenging the traditional ways in which the financial industry works.

To tap into industry sentiment surrounding digital assets, the level of adoption, perceived barriers and influencers, we conducted a survey with over 50 financial institutions across Asia.

The survey unveiled a common concern—institutional trust. From the survey we’ve observed that the skepticism surrounding institutional trust arises from the need for regulatory clarity, and institutional-grade solutions.

Institutional demand for digital assets is experiencing a notable surge. The survey reveals that nearly 60% of institutional investors have witnessed exposure to digital assets in the past 12 months. An equal percentage reports an uptick in client demand for tokenised securities. This trend indicates the growing recognition of digital assets in diversifying investment portfolios. Among those already engaged in digital asset investments, 40% express their intent to continue investments in the coming year, with an additional 25% planning significant increases in investment volume.

Over the next three years, survey participants foresee greater adoption of Central Bank Digital Currencies (CBDCs) (33%), cryptocurrencies (23.5%), and tokenised securities (21.6%), underscoring further growth of the digital assets landscape.