After Calling Bitcoin "RAT POISON" for a Decade, Suits Now Go Full-Send on Tokenization…

Jamie Dimon is silently punching air right now…

A new report from State Street, the $49 trillion custody giant, says institutions are planning to double their digital asset exposure by 2028, from roughly 7% to 16% of total portfolios. Translation: the same suits who spent a decade calling Bitcoin “rat poison” are now building entire divisions to bottle and sell it back to you.

(Source: Giphy) 

In short, State Street’s survey of asset managers found that 60% plan to increase their digital asset allocations in the next year, while nearly half already have dedicated crypto or tokenization teams. Now before you get ahead of me here, when I say tokenized teams… this isn’t busch league we are talking about. It’s not my degenerate kid cousin swapping altcoins in a Discord anymore… it’s the same friggin’ firms that built the modern financial system quietly rebuilding it on-chain.

(Source: CoinDesk) 

“Clients are rewiring their operating models around digital assets,” said State Street’s Donna Milrod. Meaning, the bank’s tone has shifted from cautious to clinical. However, it’s not crypto itself that has banks horned up. It’s the tokenization that’s the new liquidity of the future. In plain English, tokenization is the process of turning illiquid assets like private equity, bonds, or real estate into tradable blockchain tokens. In theory, that means faster settlement, fractional ownership, and a world where a pension fund can trade slices of a skyscraper like stocks. By 2030, more than half of the institutions surveyed expect 10–24% of their portfolios to live on-chain. If you can listen closely you can hear Vlad Tenev foaming at the mouth here.

Additionally, tokenization lets banks do what they’ve always done… charge fees for moving other people’s money… just with fewer middlemen and more control. What’s more is that half of respondents expect cost savings of 40% or more. That’s how you know this is real… not because they believe in decentralization, but because they found a new way to keep their grift going. 

(Source: Giphy) 

Now with that said, here’s the convergence of the study that nobody’s ready for: The study also flagged AI and quantum computing as accelerators for digital transformation. In other words, the same firms that fueled the last financial crisis are now experimenting with self-improving algorithms and quantum execution. What could possibly go wrong? By 2028, “portfolio manager” might just mean “guy who talks to the AI that talks to the blockchain.”

In the end, this is just a tell-tale sign that the financial establishment finally surrendered… not to crypto’s ideals, but to its math. And when institutions double their exposure, it’s not because they suddenly believe in financial freedom… it’s because they want the spread. They want custody fees, derivatives, and control over the rails retail built. Which means… which means… by the time  2028 rolls around, every “traditional” asset will be wrapped in a token, traded through an AI, and custodied by the same firms crypto was supposed to destroy. What a time to be alive. Until next time, friends… 

At the time of publishing, Stocks.News does not hold positions in companies mentioned in the article.