‘No going back’ for institutions moving toward tokenized onchain future, says Fidelity
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Financial institutions are increasingly adopting tokenization and moving assets onchain, with Fidelity's Matthew Horne stating there is "no going back" from this shift. US asset managers see tokenization as a way to access new markets and gain structural advantages over traditional investment products. UBS’s Ka Yan Chan highlighted that the tokenization of treasuries and equities could bring billions onchain, especially if infrastructure players like the Fed or DTCC transform custody layers.
Why it matters
The source suggests this development matters because tokenization provides better investor access and market reach, potentially attracting large volumes of capital onchain. Regulatory moves such as the SEC’s "no action" letter to DTCC subsidiaries and exemptions for trading tokenized US stocks are creating a foundation for broader adoption. However, the article does not explicitly detail the direct market or user impact beyond these general points.
Key context
Tokenized real world asset demand rose 41% in the past 30 days, with over 493,000 addresses holding these assets according to RWA.xyz data. The SEC issued a "no action" letter and temporarily exempted limited trading of tokenized US stocks, enabling new market services like those from DTCC subsidiaries and Securitize. More than $1.2 billion moved onchain within 30 days, contributing to a total tokenized capital figure above $323 billion. Standard Chartered anticipates tokenized RWAs could reach $4 trillion by 2028.
Key numbers and entities
Matthew Horne (Fidelity Investments), Ka Yan Chan (UBS), Geoff Kendrick (Standard Chartered), RWA.xyz, DTCC, SEC, Securitize, OnchainBenchmark. Tokenized asset holders: over 493,000 addresses. 41% rise in demand for tokenized assets in past 30 days. Over $1.2 billion capital moved onchain recently. Total tokenized asset capital above $323 billion.
What remains unclear
The article does not specify which exact institutional players aside from Fidelity and UBS are involved, the timeframe for broader institutional adoption beyond mentioned SEC regulatory developments, or the full implications for retail users and specific market sectors. The economic and regulatory risks or challenges of this transition are also not addressed.