Tokenization is increasingly seen as a tool for balance-sheet management among pension funds, according to Fidelity's Lai. While tokenized products are primarily used for investment, with money market funds backed by U.S. Treasuries being the most popular, their real value for institutional investors lies in their unique properties rather than ease of trading.
The global asset tokenization market, valued at approximately $2.1 trillion, is projected to grow significantly, potentially reaching $24.5 trillion by 2033. Despite the appeal of instant execution and fractional ownership, institutional investors focus on the enhanced capabilities of tokenized assets over traditional financial wrappers.
Tokenization Offers Balance-Sheet Management for Pension Funds, Says Fidelity's Lai
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