Institutional confidence grows in Luxembourg’s crypto-assets market and tokenisation

Key findings: confidence is growing

The survey results reveal strong and growing institutional confidence:

• 81% of respondents believe crypto-assets are important for the future of asset management in Luxembourg.

• The adoption rate of crypto-based products and services has almost doubled—rising from 12% in 2021 to 22% in 2025—marking a steady shift towards integration.

• The Retail Banking sector reports rising expectations for crypto-asset growth over the next five years: 40% in 2025 compared to just 4% in 2023.

• Private Banking and Wealth Management reflect a similar trend, climbing from 50% in 2023 to 60% in 2025.

• Tokenisation is seen as a game-changer, with 89% citing its potential to transform asset management via features such as instant settlement, fractional ownership, and programmability.

• A rising share of respondents—76% in 2025 versus 58% in 2023—call for Luxembourg to take a more proactive role globally. This includes engaging stakeholders, adopting supportive policies, and forming strategic partnerships to drive market development.

Challenges to tackle

Despite notable progress, some challenges persist. These include:

• Limited local expertise

• Regulatory uncertainties

• Ambiguity around investment strategies for certain market actors

• A still-maturing infrastructure

The ABBL urges Luxembourg’s financial institutions to address these gaps proactively, building on the country’s strengths in innovation, cross-border competence, and operational excellence. These assets will be key to consolidating Luxembourg’s position as a trusted hub for regulated crypto-assets and tokenisation.