Volatility is pushing firms toward discipline, and institutional crypto is reflecting that shift. A January 2026 survey of 351 institutional decision-makers by Coinbase and EY-Parthenon points to tighter controls, stronger governance, and wider use of regulated products.
Risk controls move to the center
Nearly half of institutions, or 49%, said they have increased their focus on risk management, liquidity, and position sizing. Moreover, nearly three-quarters plan to raise allocations, while 74% expect crypto prices to rise over the next 12 months.
That said, the survey also shows rising standards for participation. Governance controls, operational resilience, and risk transparency now matter more as firms assess digital asset investing through a more selective lens.
Regulated access becomes the default
Exposure through wrapped products is now common. Two-thirds, or 66%, reported exposure via spot crypto exchange-traded products, and 81% preferred spot exposure through a registered vehicle.
However, this preference goes beyond convenience. As institutional participation expands, investors increasingly expect familiar wrappers, compliance checks, and clearer protections to support broader market access.
Custody, stablecoins, and tokenization gain ground
Custody remains a major issue, especially for institutional custody crypto strategies. In 2026, 66% cited regulatory compliance as a key custodian selection factor, up from 25% in 2025. Security and key-signing protocols also rose to 66%, from 8% in 2025.
Moreover, 85% of respondents use stablecoins, or are interested in using them, for internal cash management and for moving money. That is helping firms formalize governance around counterparty risk, custody risk, reserve transparency, and around-the-clock operations.
Tokenization is also drawing more attention. 64% of asset managers said they are interested in tokenizing their assets, up from 40% in 2025. In addition, 63% of investors are interested in allocating to tokenized assets, and more than 60% expect tokenization to significantly affect market structure.
However, the same survey shows that regulation remains both a catalyst and a constraint. Among those planning to increase holdings in 2026, improving regulatory clarity was the top driver at 65%, while 75% described it as an anticipated growth catalyst.
Even so, uncertainty still weighs on decision-making. An uncertain regulatory environment was the top concern for digital asset investing at 66%, and the biggest barrier to tokenized assets at 67%. The survey suggests institutions are building longer-term operating models around governance, security, and execution rather than short-term bets.
In short, the data show a maturing market. Coinbase and EY-Parthenon’s January 2026 findings point to broader participation, more regulated access, and rising standards across crypto custody security and market infrastructure.