Fidelity sees tokenisation as the next distribution channel
Fidelity International is positioning tokenization as a critical new distribution channel rather than merely a technological experiment. Head of Digital Asset Distribution Emma Pecenicic emphasizes that for tokenized funds to scale, they must offer tangible benefits like 24/7 liquidity and instant settlement that traditional infrastructure cannot provide. Fidelity’s current tokenized liquidity fund, which operates on the Ethereum blockchain, has reached approximately $50 million in assets under management six months after launch. The fund serves institutional clients, including stablecoin issuers and crypto trading platforms, by enabling round-the-clock subscriptions and redemptions. To achieve this, Fidelity built an operational framework that supports both tokenized US dollars and stablecoins via partners like Sygnum. The firm is now evaluating potential expansion into European markets, specifically highlighting Luxembourg’s progressive regulatory environment for blockchain securities. Ultimately, Fidelity views this institutional product as a testing ground for operational models that will eventually support a broader base of digital-native retail investors.