Financial institutions are moving closer to an onchain model through tokenization initiatives, and Fidelity Investments says the trend has gathered enough momentum that a reversal is unlikely.
Matthew Horne, head of digital asset strategists at Fidelity, said tokenization gives financial institutions structural advantages over traditional investment products and can help asset managers tap new markets. Speaking on Thursday at a panel discussion during Longitude Singapore, Horne said, “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 added that US asset managers have a particular incentive to move assets onchain because tokenization improves investor access and helps them “reach new markets.”
According to data from RWA.xyz, demand for tokenized assets rose 41% over the past 30 days, while the number of holders climbed above 493,000. The figure tracks the total number of addresses holding tokenized real-world assets, excluding stablecoins.
A Cointelegraph image from the event identified the panel participants, from left to right, as Wall Street Journal reporter Jihye Lee, Fidelity’s Matthew Horne, UBS executive Ka Yan Chan, Securitize’s Chongwu Du and Maple’s Sidney Powell.
Treasurys and equities seen as major drivers of onchain growth
Ka Yan Chan, head of digital assets business development at UBS, said US Treasurys and equities could bring billions of dollars onchain because they remain core building blocks in portfolio construction.
Chan said industry participants could also “piggyback” on those efforts by building the distribution layer for tokenized assets.
The report said that in December 2025, the US Securities and Exchange Commission issued a no-action letter to a subsidiary of the Depository Trust and Clearing Corporation, 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 in tokenized shares of a dozen of the most widely held US-traded stocks, with the products set to include security entitlements.
Capital continues moving onchain
Data from OnchainBenchmark showed that more than $1.2 billion in capital moved onchain over the past 30 days, lifting the combined total across stablecoins and tokenized assets to more than $323 billion.
The article also cited a forecast from Standard Chartered’s global head of digital asset research, Geoff Kendrick, who said in August that tokenized real-world assets could reach $4 trillion by the end of 2028.