The State of Institutional Yield: 2026 Outlook

An in-depth analysis of how capital allocators are repositioning portfolios around onchain yield strategies, with data from 120+ institutional investors surveyed across five markets.

The institutional appetite for onchain yield has shifted from exploratory to strategic. Our survey of 120+ capital allocators across the US, Europe, and Asia-Pacific reveals that 68% now consider digital asset yield strategies a permanent component of their portfolio construction, up from 41% in 2024.

Liquid staking derivatives remain the dominant entry point, but restaking protocols and tokenised credit instruments are gaining traction among allocators with more than $500M in AuM. The risk-adjusted return profiles of these instruments have improved materially as smart contract auditing standards mature and insurance coverage expands.

Perhaps most notably, the survey reveals a convergence between traditional fixed-income desks and digital asset teams within the same institutions. Over half of respondents report that their digital asset allocation decisions now involve the same committee structures used for traditional alternatives.

Looking ahead, allocators cite regulatory clarity in the EU and Singapore as the primary catalyst for increased allocation, followed by improvements in institutional custody infrastructure and the emergence of standardised reporting frameworks.