Institutional shift to blockchain tokenization irreversible, Fidelity executive declares
Financial institutions gain structural benefits and access to untapped markets through tokenization, says Fidelity's digital asset strategy chief.
The financial services sector is experiencing an accelerating transition toward a blockchain-based future through tokenization programs that unlock untapped markets while delivering structural benefits over conventional investment vehicles, according to Matthew Horne, who leads digital asset strategy 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.
Asset managers based in the United States face particular incentives to transition their holdings to blockchain networks, as tokenization delivers enhanced investor accessibility while enabling firms to "reach new markets," Horne elaborated.
Interest in tokenized assets surged by 41% over the previous 30 days while the count of holders exceeded 493,000, data from RWA.xyz indicates. This metric tracks the aggregate number of wallet addresses containing tokenized real world assets, with stablecoins excluded from the calculation.
Treasuries and equities may bring billions onchain with more US tokenization adoption: UBS
Treasury securities and equity instruments could channel billions of dollars onto blockchain networks given their status as fundamental portfolio building blocks, according to Ka Yan Chan, who heads digital assets business development at UBS.
"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."
Market participants could "piggyback" on these initiatives by building the distribution layer for tokenized assets, said Chan.
In December 2025, the Securities and Exchange Commission (SEC) issued a "no action" letter to a subsidiary of the Depository Trust and Clearing Corporation (DTCC), enabling it to offer a new securities market tokenization service.
In September, the SEC approved a temporary exemption allowing limited trading of tokenized US stocks on certain onchain venues. Earlier on Thursday, Securitize announced the launch of trading of the tokenized shares of a dozen of the most widely held US traded stocks that will include security entitlements.
Capital exceeding $1.2 billion has migrated to blockchain networks over the preceding 30 days, pushing the combined total spanning stablecoins and tokenized assets beyond $323 billion, data from OnchainBenchmark shows.
Tokenized RWAs may reach $4 trillion by the end of 2028, predicted Standard Chartered's global head of digital asset research, Geoff Kendrick, in August.