America’s oldest bank says 70% of institutional clients will invest in crypto if this one thing happens
BNY Mellon, America’s oldest bank and one of the more crypto-friendly institutions, has said that 70% of institutional investors will increase their digital asset activity when more custody services are available.
In a recent research report titled “Institutional Investing 2.0,” BNY Mellon revealed that 70% of institutional investors surveyed would “increase their activity in digital assets if services such as custody and execution are available from recognized, trusted institutions.”
The report noted that institutional investors are looking for ways to enter the crypto market in a safe and compliant manner, rather than just jumping in immediately with hopes of high returns.
Furthermore, the banking giant revealed that around 90% of institutional investors are moving ahead with their crypto plans despite the market downturn. “The study further indicates that almost all institutional investors (91%) are interested in investing in tokenized products.”
The report also revealed that the majority (88%) of institutions are comfortable with digital representation of cash, or so-called stablecoins. However, 72% said they wanted an “integrated provider for all digital asset needs.”
The results were collected from a survey of 271 institutional investors, traditional buy-side entities such as assets (pension funds, sovereign wealth funds, etc.), institutional asset management firms and hedge funds, who shared their perspectives on investing in digital assets.
97% of institutional investors favor “tokenized” assets
The report found that institutional investors are increasingly interested in tokenization. “97% agree that ‘tokenization will revolutionize asset management’ and be ‘good for the industry,'” the report highlighted.
In fact, 63% of respondents said they are only comfortable trading tokenized assets with highly rated traditional institutions. The report listed the removal of friction from the transfer of value and increased access for mass affluent and retail investors as the benefits of tokenization.
“Every asset manager surveyed with more than $1 TN in assets under management (AUM) is interested in investing in tokenized products,” the report noted. “The majority (60%) of respondents agree that they are interested, but the large technology investment is an inhibitor.”
The report’s findings of growing interest in tokenized assets are in line with a recent report by global consultancy BCG and private markets digital exchange ADDX, which revealed that there is a huge market for tokenized assets as they help bring liquidity to illiquid markets .
The BCG report claimed that the total size of tokenized assets globally is expected to grow by more than 50,000% and reach a staggering $16 trillion by 2030.
