Fidelity strategist: The long-term value of tokenized funds for institutions lies in balance-sheet management, not 24/7 liquidity

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Mars Finance news: According to Coindesk, Giselle Lai, director and digital assets strategist for Fidelity International in the Asia-Pacific region, said that tokenized funds are the most compelling long-term use case for large global institutions, and that it isn’t 24/7 liquidity, but rather balance sheet management. Lai noted that global institutions usually need to hold cash across multiple jurisdictions, manage foreign exchange exposure, and meet regulatory requirements, and that these bank deposits often do not generate returns. Compared with traditional account systems, tokenized tools can provide 24/7 interest-bearing access, improve fund transfer efficiency, and better serve institutional needs for liquidity and collateral management. She also said that current tokenization products are mainly applied in investment scenarios, with the most popular being tokenized money market funds whose main underlying assets are U.S. Treasury bills. What institutional investors truly care about is not the “token” itself, but whether it can help asset management become faster and cheaper.
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