# Analysis: Institutional Depositors Optimistic About Digital Assets, with 83% Intending to Augment Possessions
A fresh analysis by Coinbase and Ernst & Young Parthenon demonstrates that an impressive 83% of institutional depositors plan to inject additional capital into digital assets by 2025.
Released on the Coinbase blog on March 18, the analysis surveyed decision-makers at 352 firms. The results underscore an increasing belief that digital assets are permanent and will produce substantial yields.
Over half (59%) of those surveyed intend to allocate at least 5% of their assets under management to digital assets this year. This transition indicates that digital assets are shedding their image as a specialty investment and becoming a standard component of institutional portfolios. Signet Jewelers Shares Skyrocket: Financial Expansion Driven by Post-Holiday Deals and Fresh Approaches
Stablecoins are also gaining popularity, with 84% of depositors either utilizing them or considering doing so. While historically employed for digital asset trading, stablecoins are now being investigated for yield generation, forex, cash management, and payments.
DeFi is also ascending. Presently, only 24% of surveyed depositors are involved in DeFi, but that number is predicted to surge to 75% within two years. Many view DeFi as a portal to lending, derivatives, and staking opportunities.
Intriguingly, 73% of respondents possess assets beyond just Bitcoin and Ethereum, indicating robust interest in altcoins. Ripple (XRP) and Solana (SOL) are among the most commonly held, and many depositors are eyeing single-asset exchange-traded products for altcoins.
Despite the optimism, obstacles persist. Depositors are most concerned about regulatory ambiguity (52%), market instability (47%), and secure custody (33%). A considerable 68% believe that more explicit regulations would stimulate market expansion.
Securitize and Ethena Labs have collaborated to introduce Converge, a blockchain-based environment created to motivate organizations to adopt tokenized instruments. This Ethereum-suited network is supported by prominent entities such as Aave Labs, Maple Finance, and Pendle. Converge is focused on connecting the divide between conventional financial practices and decentralized financial practices (DeFi) by delivering a controlled space for tokenized instruments to prosper.
