Fidelity says institutional tokenization push accelerates as onchain asset demand grows

Fidelity says institutional tokenization push accelerates as onchain asset demand grows
Tokenization gains traction

Financial institutions are deepening their move toward tokenized onchain markets as asset managers seek broader investor access and more efficient product structures. Recent growth in tokenized asset holders and fresh regulatory steps in the U.S. are reinforcing expectations that more traditional securities could shift onto blockchain-based rails.

Highlights

  • Fidelity Investments says U.S. institutions increasingly view tokenization as a structural shift, not a short-term trial, with onchain momentum accelerating in the past 18 months.
  • Demand for tokenized assets rose 41% in the past 30 days, holders exceeded 493,000, and over $1.2 billion in capital moved onchain, lifting combined totals above $323 billion.
  • Regulatory milestones include the SEC's December 2025 no-action letter enabling new DTCC tokenization services and a September temporary exemption for limited trading of tokenized U.S. stocks.

Institutional tokenization momentum builds

As reported by Cointelegraph, Fidelity Investments says large financial institutions are increasingly treating tokenization as a structural shift rather than a short-term experiment. Matthew Horne, head of digital asset strategists at Fidelity, said during a panel discussion at Longitude Singapore on Thursday that the institutional push toward an onchain future over the past 18 months leaves "really no going back."

Horne said U.S. asset managers are particularly motivated to move assets onchain because tokenization improves investor access and helps firms reach new markets. He said these features give tokenized products structural advantages over traditional investment vehicles.

Data cited from RWA.xyz shows demand for tokenized assets rose 41% over the past 30 days, with the number of holders topping 493,000. The measure tracks addresses holding tokenized real-world assets, excluding stablecoins.

Regulatory shifts and market infrastructure support expansion

UBS says larger flows could follow if core market infrastructure moves onto tokenized platforms. Ka Yan Chan, head of digital assets business development at UBS, said treasuries and equities could bring billions of dollars onchain, and potentially far more, if entities such as the Federal Reserve or DTCC take early steps in transforming the custody layer.

Chan said other industry participants could then build distribution services on top of that infrastructure. In December 2025, the Securities and Exchange Commission issued a no-action letter to a DTCC subsidiary, allowing it to offer a new securities market tokenization service.

In September, the SEC also approved a temporary exemption for limited trading of tokenized U.S. stocks on certain onchain venues. Securitize said earlier on Thursday that it is launching trading in tokenized shares tied to a dozen of the most widely held U.S.-traded stocks, including security entitlements.

Separate data from OnchainBenchmark shows more than $1.2 billion in capital moved onchain during the past 30 days, lifting the combined total across stablecoins and tokenized assets above $323 billion. Standard Chartered's global head of digital asset research, Geoff Kendrick, said in August that tokenized real-world assets could reach $4 trillion by the end of 2028.

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