A March 18, 2025, survey by Coinbase, conducted in collaboration with EY-Parthenon, reveals that 83% of institutional investors plan to increase their crypto holdings this year. The survey, which polled 352 institutional firms, highlights a growing appetite for digital assets driven by:
- Strong risk-adjusted returns
- Expanding decentralized finance (DeFi) adoption
- Increased stablecoin utility
Crypto Becoming a Core Institutional Asset
Among the key findings:
- 59% of respondents plan to allocate over 5% of their assets under management (AUM) to crypto.
- 84% of institutions are either using or considering stablecoins for applications such as yield generation (73%), foreign exchange (69%), internal cash management (68%), and external payments (63%).
- Altcoins are gaining traction, with XRP and Solana (SOL) among the most widely held assets.
DeFi and Regulation: Key Drivers of Institutional Growth
The report also highlights a significant shift towards DeFi, predicting that:
- Institutional engagement with DeFi will rise from 24% to 75% within two years.
- Regulatory clarity is expected to be a major catalyst for further adoption, particularly in crypto custody.
Despite ongoing regulatory challenges and market volatility, institutional confidence remains strong. Coinbase remains optimistic, stating:
“Institutions are deepening their engagement with crypto in 2025—from larger allocations to expanding use cases—all signs indicate positive momentum.”
With growing institutional interest, 2025 could mark a pivotal year for digital asset integration into mainstream finance.
