A recent survey conducted by EY-Parthenon and Coinbase involved over 350 institutional investors worldwide in January 2025. While investors highlighted regulatory clarity as the primary driver for growth in the digital assets sector, the findings revealed a strong eagerness for innovation and the demand for new crypto-powered products and services.

Both institutional and retail investors are looking for opportunities that can generate yields, facilitate credit and lending services, enable cross-border transactions, and help in wealth accumulation.

As this ecosystem evolves, traditional financial institutions (TradFi) are expected to leverage their expertise to introduce new investment vehicles safely, while a more favorable regulatory environment will accelerate innovation in decentralized finance (DeFi) for progressive clients and a new financial generation.

Rising Interest in Digital Assets

The survey showed that 87% of institutional investors plan to up their investment in cryptocurrencies in 2025 across a variety of channels, including Exchange-Traded Products (ETPs), digital asset firms, stablecoins, and more. Notably, 55% of participants already own spot cryptocurrencies through ETPs, with a significant number expressing their intent to invest via registered vehicles like ETPs.

Embracing Innovation with Stablecoins

Moreover, 84% of the surveyed investors are currently utilizing or plan to use stablecoins, such as Tether (USDT) and USD Coin (USDC), as they enhance payment processes and risk management in currency exchange and cash management. The increasing inclination towards tokenization also suggests that investors are seeking broader access to investment alternatives, paving the way for fractional ownership in previously exclusive assets like real estate and private equity.

The expectations among institutional investors reflect a belief that digital assets will shift from niche markets into mainstream financial experiences, ultimately propelling growth in decentralized financial systems.