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

Introduction

Tokenization is a growing trend in the crypto space, with institutions increasingly moving towards a tokenized onchain future. According to Matthew Horne, head of digital asset strategists at Fidelity Investments, this shift is driven by the need for better investor access and the ability to reach new markets.

Benefits of Tokenization

Tokenization provides structural advantages to financial institutions and asset managers, allowing them to offer new investment products and access new markets. This is particularly true for US asset managers, who are incentivized to move assets onchain due to the growing demand for tokenized assets.

Market Trends

The demand for tokenized assets has been rising rapidly, with over $1.2 billion in capital moving onchain in the past 30 days. The total value of tokenized assets is expected to reach $4 trillion by 2028, according to Standard Chartered's global head of digital asset research. This trend is expected to continue, with financial institutions and asset managers embracing the benefits of tokenization.

Regulatory Environment

The regulatory environment is also playing a role in the growth of tokenization. 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.

Conclusion

In conclusion, the tokenized onchain future is here to stay. With the growing demand for tokenized assets, the benefits of tokenization, and the regulatory environment supporting this trend, it is clear that institutions are moving towards a tokenized onchain future. This trend is expected to continue, with financial institutions and asset managers embracing the benefits of tokenization.