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Fidelity strategist says tokenization’s top case is balance-sheet management
CoinDesk reports Fidelity International’s Giselle Lai argues tokenized funds could help large institutions manage cash across fragmented bank accounts and earn yield more efficiently than idle deposits.
Fidelity International’s Giselle Lai said the most compelling long-term use case for tokenized funds is balance-sheet management for large, global institutions, rather than the usual pitch focused on 24/7 liquidity, according to CoinDesk.
In an interview at the WebX conference in Tokyo, Lai pointed to a common operational problem for institutions that must hold cash across multiple bank accounts worldwide to meet regulatory requirements, manage currency exposure, and prepare for funding demand. She said deposits in those accounts can earn little or no return, and that shifting balances between jurisdictions quickly is difficult.
Lai argued that tokenized instruments, which represent real-world assets on blockchain ledgers, could move efficiently, run alongside broader liquidity needs, and help improve capital efficiency without requiring a full rethink of long-term investment strategy, CoinDesk reported.
She also said tokenized products already exist mainly for investing, highlighting tokenized money market funds backed by U.S. Treasuries as the most popular category. CoinDesk reported that this segment has grown to more than $15 billion in assets under management, citing BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), which debuted in March 2024.