According to Giselle Lai from Fidelity International, the primary long-term advantage of tokenized funds lies in balance-sheet management for major global institutions, rather than around-the-clock liquidity.
By Omkar Godbole|Edited by Sheldon Reback Jul 14, 2026, 2:05 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on Balance-sheet management may surpass trading in importance for tokenized assets. (Shutterstock)SummaryShow- Giselle Lai from Fidelity International emphasizes that the main long-term utility of tokenized funds is in managing balance sheets for substantial global entities, rather than ensuring constant liquidity.
- Tokenized money market funds and similar on-chain tools can enhance efficiency for pensions, insurers, and corporations in utilizing cash across diverse accounts and regions.
- Lai noted that developing a comprehensive balance-sheet management ecosystem from tokenization will span decades.
Giselle Lai articulates a vision for how tokenized funds can provide significant benefits for large institutions, focusing on balance-sheet management rather than merely the typical appeal of continuous liquidity, which still plays a role.
“I believe that over time, balance sheet management will emerge as the more attractive application,” stated Lai, who serves as a director and digital assets strategist for APAC at Fidelity International, during an interview at Tokyo's WebX conference.
Global corporations are often required to keep cash in various bank accounts around the world to adhere to regulations, manage currency risks, and meet demand adequately. Many of these deposits do not yield returns, making timely management and transfers across jurisdictions a complex challenge.
For businesses needing to navigate liquidity between multiple bank accounts, tokenized assets could represent "a more effective solution, especially if they can utilize instruments with 24/7 yield capabilities to optimize their balance sheets."
Tokenized assets, which are real-world assets recorded on blockchain systems, can move effectively, generate yields continuously, and align with broader liquidity requirements. Their adoption could streamline balance-sheet management while enhancing capital efficiency without necessitating a complete revision of long-term strategies, according to Lai.
Current tokenized offerings primarily focus on investment opportunities, with tokenized money market funds—largely supported by U.S. Treasuries—being the most prevalent. The largest of these, BlackRock's USD Institutional Digital Liquidity Fund (BUIDL), launched in March 2024.
This segment has accumulated over $15 billion in assets under management (AUM), while the overall on-chain real-world asset market (excluding stablecoins) has exceeded $31 billion in value. Expanding the scope to incorporate alternative investments and tokenized financial infrastructure, the global asset tokenization market is estimated at around $2.1 trillion.
Grand View Research projects this sector could grow to $24.5 trillion by 2033, with some estimates suggesting it could reach as much as $88 trillion by 2035.
The primary benefits of tokenization include instantaneous execution at all hours and fractional ownership, enabling traders to purchase small portions at any time, with the entire transaction process—covering purchase, sale, and finalization—being completed instantly.
More Efficient and Cost-Effective
However, institutional investors prioritize the characteristics of tokenized assets over their trading convenience.
They seek methods to manage assets more swiftly and economically than they currently can. This shift in focus helps clarify why tokenized money market funds are rapidly becoming popular among issuers of stablecoins, treasuries, and platforms requiring continuous yield and collateral fluidity.
Despite this growing interest, the establishment of a fully functional balance-sheet management tool will likely take substantial time.
“It took nearly 20 years for the ETF industry to create a comprehensive ecosystem… a similar progression is expected in the tokenization sector,” she concluded.
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Gate Leads Spot Market Share Gains as CEX Volumes Rise for First Time in Five Months
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CEX trading volumes rose for the first time in five months in June, with spot climbing 15.3% to $1.11T and RWA perpetual volumes surging to a record $311B.
By CoinDesk ResearchJul 13, 2026CEX trading volumes rose for the first time in five months in June, with spot climbing 15.3% to $1.11T and RWA perpetual volumes surging to a record $311B.
Why it matters:
CEX trading volumes rose for the first time in five months in June, with spot climbing 15.3% to $1.11T and RWA perpetual volumes surging to a record $311B.
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