Interest in stablecoins is notably high, with 84% of institutions either using or planning to use them for purposes beyond transactions, such as yield generation and foreign exchange.

A recent survey conducted by Coinbase indicates that a significant 83% of institutional investors plan to increase their cryptocurrency allocations in 2025.

Institutional investors view regulation as both a major opportunity and risk for the crypto market in 2025, highlighting the need for clarity in custody, tax treatment, and stablecoin usage.

Investors have cited 'regulatory clarity' as the main reason for their increased investments in digital assets.

This interest in cryptocurrencies follows a strong performance in 2024, characterized by rising adoption of stablecoins, decentralized finance (DeFi), and tokenized assets.

The survey results indicate that institutional investors were more likely to own XRP than Solana as of January 2025, reflecting a trend that may influence market dynamics for altcoins.

The survey reflects a positive outlook for the crypto industry under the new U.S. administration, which aims to position the country as the 'crypto capital of the world.'

The report emphasizes that regulatory clarity is seen as the primary driver of growth in the digital asset industry.

Among these investors, 59% intend to allocate over 5% of their assets under management to digital assets or related products.

The survey also revealed that 74% of respondents currently hold one or more altcoins in addition to Bitcoin and Ether.

Currently, only 24% of institutional investors are utilizing DeFi platforms, but this figure is projected to rise to nearly 75% within two years, driven by interest in derivatives, staking, and lending.

Approximately 80% of surveyed investors anticipate a rise in crypto prices, with 70% viewing crypto as a significant opportunity for attractive risk-adjusted returns.