# Fidelity Says Institutions Are Moving Toward Tokenized Markets With No Reversal

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/28122
Published: 2026-10-08T13:48:08.000Z
Updated: 2026-10-08T13:48:08.000Z
Section: Business

> Fidelity’s Matthew Horne said tokenization is helping asset managers reach new markets, while UBS sees Treasurys and equities as potential drivers of wider adoption.

Financial institutions are moving more assets toward tokenized markets as firms seek broader investor access and new distribution channels, with Fidelity Investments executive Matthew Horne describing the shift as irreversible.

“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 said during a panel discussion in Singapore on Thursday.

Horne said U.S. asset managers have a strong incentive to place assets onchain because tokenization can improve access for investors and help firms reach markets that traditional investment products may not serve efficiently.

The potential expansion extends beyond alternative assets. Ka Yan Chan, head of digital assets business development at UBS, said Treasurys and equities could become major sources of growth because they are core parts of many investment portfolios.

Chan said the market could move from billions to trillions of dollars when major infrastructure providers such as the Federal Reserve or the Depository Trust and Clearing Corporation shift custody systems to tokenized platforms. Other companies could then build distribution services on top of that infrastructure.

The Securities and Exchange Commission issued a no-action letter in December 2025 to a DTCC subsidiary, allowing it to offer a tokenized securities market service. In September, the SEC also approved a temporary exemption for limited trading of tokenized U.S. stocks on certain onchain venues.

Securitize, which provides digital asset infrastructure, announced Thursday that it had launched trading for tokenized shares of 12 widely held U.S. stocks. The offering includes security entitlements, which represent rights connected to the underlying securities.

The developments build on Securitize’s exploration of tokenized assets with South Korean technology firm LG CNS, including potential infrastructure for tokenized funds, stocks and stablecoins.

Tokenization converts rights to an asset into digital units recorded on a blockchain. For financial firms, the approach can affect how assets are issued, held, transferred and distributed. Broader adoption will depend on whether market infrastructure and regulators continue to support those changes.