Fidelity Strategist: The Long-Term Value of Tokenized Funds Lies in Balance Sheet Management, Not 24/7 Liquidity

According to ChainCatcher, citing Coindesk, Giselle Lai, Director and Digital Assets Strategist for Fidelity International in Asia Pacific, stated that the most compelling long-term use case for tokenized funds for large global institutions is not 24/7 liquidity, but balance sheet management. Lai noted that global institutions typically need to hold cash across multiple jurisdictions, manage currency exposure, and comply with regulatory requirements—yet these bank deposits often generate no return. Compared to traditional account systems, tokenized instruments can provide 24/7 interest-bearing capabilities, improve fund transfer efficiency, and better serve institutional liquidity and collateral management needs. He also added that current tokenized products are primarily used for investment purposes, with the most popular being tokenized money market funds whose underlying assets are primarily U.S. Treasuries. Institutional investors are not truly focused on the “token” itself, but rather on whether it can make asset management faster and cheaper.