89% of Institutions Fund Crypto, Only 16% Deploy

Where do institutions see the competitive pressure? Not from other banks. Some 43% of respondents identified fintech companies and payment service providers as the primary threat driving their blockchain and digital asset strategies.

Payment solutions and tokenized securities rank among the top use cases institutions are prioritizing. On the asset side, the focus is on stablecoins and tokenized deposits, the survey found. Tokenized securities have seen growing volumes, with platforms like Bybit adding Meta and Tesla stocks as the market reached $1.48B in notional value, according to a recent report.

Regulation is viewed as a tailwind by 96% of respondents, the survey found. The expectation is that upcoming frameworks, including MiCA in Europe and evolving US guidance, will be favorable or very favorable for digital asset adoption.

MiCA, which took full effect in the European Union, establishes rules for crypto-asset markets and stablecoin issuance. It also sets licensing requirements for service providers. In the US, the regulatory picture has shifted under more crypto-receptive political conditions, with clearer guidelines emerging for bank custody, trading, and digital asset offerings.

The report suggests the primary challenge is not willingness to invest but execution capacity. Many institutions are still determining how to integrate digital asset services into existing compliance and technology stacks, a pattern reflected in the wide gap between budget and live products.