According to a recent survey by BNY Mellon titled “Institutional Investing 2.0,” 70% of institutional investors polled said they would “increase their digital asset activity” if credible, reputable institutions offered services like custody and execution. According to the survey, institutional investors prefer to enter the cryptocurrency market slowly and legally rather than rushing in with the expectation of quick profits.
BNY Mellon is the oldest bank in the United States and one of the organisations that is more supportive of cryptocurrencies. According to the BCG analysis, the entire value of tokenized assets is predicted to increase by over 50,000% and reach a startling $16 trillion by 2030.
The results were compiled from the responses of 271 institutional investors, traditional buy-side organisations like hedge funds, sovereign wealth funds, institutional asset management companies, and pension funds. They were surveyed about their outlooks on investing in digital assets.
The majority of institutions, or 88 per cent of them, are at ease using stablecoins, or digital currencies, as per the survey. But 72% of respondents stated that they would prefer an all-in-one provider for all digital asset needs.
The financial behemoth also disclosed that despite the market collapse, about 90% of institutional investors are continuing with their crypto endeavours. According to the report, institutional investors are becoming more and more interested in tokenization. Tokenization will change asset management, according to 97% of respondents, and will be beneficial for the sector.
63% of survey participants claimed they feel most at ease trading digital assets with reputable traditional institutions. According to the survey, tokenization has several advantages, including lowering transaction costs and facilitating access for mass- and retail-affluent investors.
60% of those surveyed concur that they are intrigued but that the significant technical expenditure is a deterrent. Every asset manager questioned who manages more than $1 TN in assets (AUM) is enthusiastic about investing in tokenized goods.