Fidelity Says Tokenized Onchain Future Is 'No Going Back' for Institutions
Institutions are locking into tokenization
Financial institutions are moving toward an onchain future using tokenization, and it is unlikely to reverse, according to Matthew Horne, head of digital asset strategists at Fidelity Investments. He spoke at a panel discussion at Longitude Singapore on Thursday. "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," Horne said. Tokenization means representing real-world assets like stocks or bonds as digital tokens on a blockchain, which is a shared digital ledger. Horne said it offers structural advantages over traditional investment products and helps asset managers reach new markets.
Rising demand and key numbers
- Demand for tokenized assets rose 41% in the past 30 days, according to RWA.xyz.
- The number of addresses holding tokenized real-world assets topped 493,000, excluding stablecoins — cryptocurrencies designed to maintain a stable value.
- More than $1.2 billion in capital moved onchain in the past 30 days, pushing the total across stablecoins and tokenized assets above $323 billion, per OnchainBenchmark.
What UBS and others are saying
Ka Yan Chan, head of digital assets business development at UBS, said government treasuries and equities could bring billions of dollars onchain as core parts of investment portfolios. "What would really drive the billions to the trillions is when market infrastructure players like the Fed or DTCC make the first move in transforming the custody layer to a tokenized platform," Chan said, referring to the Federal Reserve and the Depository Trust and Clearing Corporation, two major US financial market infrastructure firms. Industry players could then build distribution layers for tokenized assets on top of that infrastructure, Chan added.
Regulatory moves clearing the path
In December 2025, the Securities and Exchange Commission issued a "no action" letter to a subsidiary of the DTCC, allowing it to offer a securities market tokenization service. In September, the SEC approved a temporary exemption permitting limited trading of tokenized US stocks on certain onchain venues. On Thursday, Securitize announced it would launch trading of tokenized shares for a dozen widely held US stocks, including security entitlements — legal rights to the benefits of a security.
Why this matters for the financial system
Standard Chartered's global head of digital asset research, Geoff Kendrick, predicted in August that tokenized real-world assets could reach $4 trillion by the end of 2028. If major infrastructure players like the Fed or DTCC adopt tokenization, it could accelerate that timeline significantly.
What is still unclear
It remains unclear exactly when or how the Fed or DTCC will transform their custody systems to tokenized platforms. Chan's comments suggest these moves have not yet happened, but no official timeline has been announced.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.