From niche curiosity to boardroom priority: crypto-assets have completed their remarkable journey into Luxembourg's financial mainstream, according to the third annual Crypto-assets Management Survey released yesterday by The LHoFT Foundation and PwC Luxembourg.

The findings reveal a financial sector undergoing profound transformation, with 81% of respondents now viewing crypto-assets as strategically important for Luxembourg's financial future – up from 71% just two years ago.

Significant change in outlook

The study, which surveyed over 130 financial industry professionals with support from ALFI, ABBL – The Luxembourg Bankers’ Association,, and the Luxembourg Blockchain Lab, captures a dramatic shift in market outlook:

-    Half of the respondents believe the global crypto-assets market has reached its inflection point

-    Only 19% still view crypto as a niche market, down dramatically from 44% in 2023

-    Customer demand has more than doubled since the previous survey

Perhaps most telling is the explosive growth in retail banking interest, which skyrocketed from a mere 5% in 2023 to 30% this year—signalling crypto-assets's breakthrough into mainstream financial services.

"The crypto-assets landscape in Luxembourg is showing signs of promise. Compared to the previous edition of the survey, which took place during the so-called 'crypto winter' of early 2023, this edition shows growing interest in crypto-assets among all segments of the Luxembourg financial centre. This shift is partly driven by the EU Markets in Crypto-Assets Regulation (MiCA) which established a robust regulatory framework that protects investors and promotes market integrity. Looking ahead, the survey's findings are clear: Luxembourg has the potential to become a key jurisdiction for serious crypto-asset service providers under MiCA.", explained Dariush Yazdani, PwC Partner and Head of Global AWM & ESG Research Centre.

Tokenisation leads the charge

The report highlights tokenisation as the driving force behind institutional adoption, with nearly half (47%) of respondents already offering or planning to offer tokenised products. Industry professionals cited instant settlement (80%) and round-the-clock trading (60%) as the most transformative features of these new assets.

Oriane Kaesmann, Research Manager at The LHoFT, noted: “Tokenisation marks a deep structural evolution in finance. The underlying infrastructure shows that this system is truly interoperable at a global level. Round-the-clock markets are no longer novelties, they are the new normal; and institutions internalising this shift are positioning themselves to lead the capital markets in the next decade.”

Challenges Remain

Despite the optimism, significant hurdles persist. Limited local expertise (64%) and concerns about internal risk appetite and reputation (63%) continue to slow wider adoption. While infrastructure maturity has improved, with those viewing it as insufficient dropping from 73% to 59%, technological gaps remain.

The implementation of MiCA regulation represents both a challenge and opportunity, with over half of respondents conducting gap analysis and 21% actively pursuing Crypto-Asset Service Provider (CASP) licensing.

Nasir Zubairi, CEO of The LHoFT: “This year’s survey confirms that crypto-assets are moving from the periphery into the heart of financial strategy. Luxembourg is exceptionally well-placed to lead—our regulatory pragmatism, cross-border expertise, and infrastructure are built for this transition. With tokenisation gaining ground and MiCA offering the clarity institutions need, we are poised to seize the opportunity. We must continue to foster talent, build confidence, and act with strategic purpose to secure Luxembourg’s role at the forefront of this digital era.”

The full report is available for download from The LHoFT website: https://lhoft.com/white-papers/crypto-assets-management-survey-3rd-edition/