- A majority of Asian institutional investors already have exposure to crypto.
- Almost half of these investors plan to increase their positions.
- Tokenised real-estate is a particular area of interest.
Institutional demand for crypto is growing.
A survey undertaken by SBI Digital Assets Holdings, a subsidiary of Japanese asset manager SBI Holdings, found that nearly 60% of Asian institutional investors had gained exposure to some form of digital assets in the last year.
Of these institutions, almost 40% indicated they were looking to increase their exposure in2024, while 25% said they were planning “significant increases.”
Only 15% said they had no plans to invest or transact in digital assets.
“This trend indicates the growing recognition of digital assets in diversifying investment portfolios,” the report said.
Areas of interest were varied. Of the institutions already dipping their toes in digital assets, 67% said they were most involved in cryptocurrencies — however, 33% predicted that central bank digital currencies would receive the highest adoption within the next three years.
The tokenisation of real-world assets is also a priority, with almost 62% of institutions saying their clients had expressed demand for tokenised securities.
When asked what kind of assets they would prioritise with tokenising, 40% of institutions answered real estate, 14% funds, 14% physical infrastructure, 10% bonds, and 10% collectibles such as artwork. The rest was divided between equities and precious metals.
“On the benefits of tokenising real-world assets, nearly half of participants cite reduced intermediaries as the primary factor, with faster settlement, cost efficiency, enhanced transparency, and increased liquidity as others,” the report said.
But respondents also saw barriers to adoption. The biggest obstacle, 60% of them said, was the “lack of trusted ecosystem to take transactions from end-to-end.” In other words, institutions are worried that existing crypto infrastructure doesn’t allow them to properly conduct their business.
Only 20% of institutions found that cyberthreats constituted a bigger danger, while 18% cited the lack of regulatory clarity around the industry.
Tom Carreras is a markets correspondent at DL News. Got a tip about tokenisation? Reach out at tcarreras@dlnews.com
