‘No going back’ for institutions moving toward tokenized onchain future, says Fidelity

What happened

‘No going back’ for institutions moving toward tokenized (representing an asset as a tradable entry on a blockchain) onchain future, says Fidelity, according to Cointelegraph. Tokenization offers structural advantages to financial institutions and helps asset managers reach new markets, according to Fidelity’s head of digital asset strategists. Financial institutions are increasingly moving toward an onchain future with tokenization initiatives which provide access to new markets and offer structural advantages compared to traditional investment products, according to Matthew Horne, head of digital asset strategists at Fidelity Investments.

“In the last 18 months, if you look at the push by true institutions to move toward an onchain future, it’s really no going back,” said Horne during a panel discussion at Longitude Singapore on Thursday. US asset managers are particularly incentivized to move assets onchain as tokenization provides better investor access and helps them “reach new markets,” explained Horne.

Demand for tokenized assets rose by 41% during the past 30 days as the number of holders topped 493,000, according to RWA.xyz . That figure measures the total number of addresses holding tokenized real world assets, excluding stablecoins (a digital token meant to hold a fixed value, usually one dollar).

Key facts

• US asset managers are particularly incentivized to move assets onchain as tokenization — provides: better investor access and helps them “reach new markets,” explained Horne