Fidelity exec: Fund tokenization is for balance sheet management, not liquidity

Giselle Lai, Director of Digital Assets Strategy for Asia Pacific at Fidelity International, has stated that the true role of tokenization for pension funds is balance-sheet management, rather than providing investment opportunities or liquidity. According to CoinDesk, she said the most compelling long-term use case for fund tokens is not 24-hour liquidity but the management of balance sheets for large global institutions. Lai explained that tokenized money market funds and other on-chain products could help pension funds, insurers, and corporations use cash more efficiently across distributed accounts and jurisdictions. However, she noted that despite this demand, the development of comprehensive balance-sheet management tools is expected to take time, comparing it to the nearly 20 years it took for the ETF industry to build a complete ecosystem.