Fidelity International says investors are increasingly using tokenised assets as collateral.
It comes as regulatory clarity and growing institutional adoption accelerate the shift towards on-chain capital markets.
Emma Pecenicic, Head of Digital Assets Distribution at Fidelity International, said clients are seeking greater utility from tokenised assets beyond simply holding them. “With our tokenised liquidity strategy, we are seeing some of our client base trying to look beyond simply holding the asset and, in some cases, using it as collateral,” she said.
Speaking to Bloomberg during Token2049, Pecenicic said three factors are driving adoption of blockchain-based financial infrastructure: regulatory progress, improved connectivity between traditional and digital markets, and growing client demand.
She explained that regulators in Singapore, Hong Kong and the US have helped create a more supportive environment for tokenisation, encouraging financial institutions to explore new use cases and bring additional assets on-chain.
According to Pecenicic, banks are increasingly considering how capital markets infrastructure could be rebuilt using blockchain technology, allowing assets to move more efficiently and potentially unlock new functionality.
Fidelity recently launched its tokenised liquidity strategy, FILQ, a digital fund designed to provide exposure to yield from regulated government securities while remaining accessible within on-chain financial ecosystems.
Pecenicic said tokenisation has the potential to support a wider range of financial activities by enabling assets to be used within collateral, lending and treasury management workflows.
She added that younger investors, many of whom first entered financial markets through cryptoassets, increasingly expect a digital-first investment experience and greater flexibility when accessing financial products.
However, Pecenicic cautioned that fully connected on-chain markets will require significant upgrades to technology, governance and risk-management frameworks before becoming mainstream.
The comments come as tokenised money market funds emerge as one of the fastest-growing areas of digital finance. Industry data suggests tokenised money market fund assets more than doubled during 2025 as institutional adoption accelerated.
