Institutional investors are increasing crypto allocations - 73% plan to raise exposure in 2026 - but with far stricter risk controls. A January 2026 Coinbase and EY-Parthenon survey of 351 decision-makers shows growing preference for regulated access: 66% use spot crypto ETFs; 81% prefer exposure via registered vehicles.
Regulatory uncertainty remains the top tension: 65% cite clearer rules as a key driver to increase holdings, yet 66% name it their primary concern. The proposed U.S. Digital Asset Market CLARITY Act - aiming to define SEC/CFTC jurisdiction, stablecoin rules, and market structure - is gaining momentum amid OCC guidance enabling bank participation.
Stablecoin adoption is accelerating: 86% already use or plan to use them, primarily for T+0 settlement and cash management. Tokenization draws strong interest - 63% are very interested in tokenized assets, with 60% expecting major impact on trading and settlement within 3-5 years.
Custody priorities have shifted dramatically: regulatory compliance and security/key-signing protocols now rank at 66%, up from 25% and 8% respectively a year ago. Cost has fallen to the bottom of the list.
Coinbase’s David Duong says institutions no longer treat crypto as a trade - they’re building permanent operating models grounded in governance, compliance, and operational resilience.