Asset managers: tokenized digital wallets will hold people’s entire portfolios
At the Ondo Summit in New York, senior asset-management executives from Franklin Templeton, Fidelity, State Street and WisdomTree argued that tokenization has moved from theory to practical infrastructure and predicted a ‘wallet-native’ future where digital wallets hold and manage most financial assets. Franklin Templeton’s head of innovation Sandy Kaul said the “totality” of people’s assets will be represented in tokenized wallets. Panelists agreed the technology is ready; the main hurdles are building real-world utility, trust and investor education. Fidelity’s Cynthia Lo Bessette said token representation is easy but ecosystem utility is hardest. State Street’s Kim Hochfeld highlighted tokenized funds’ potential to improve liquidity and collateral management, citing the 2022 UK mini‑budget liquidity stress as an example where tokenized assets could provide instant collateral. WisdomTree’s Will Peck noted growing interest from crypto-native firms and compared tokenized products to early ETFs — adoption follows when products demonstrably work better. Panelists also pointed to emerging “universal liquidity layers” on blockchain rails enabling seamless, global access and more personalized portfolios. Key takeaways for traders: tokenization’s infrastructure maturity increases the long-term case for on‑chain liquidity and collateral markets; near-term adoption remains gradual and dependent on regulatory clarity, institutional education, and demonstrable utility.
Neutral
This news is market‑relevant but not immediately price‑moving. Major institutional asset managers confirming that tokenization infrastructure is viable is a bullish structural signal for crypto markets over the medium to long term because it supports growth in on‑chain liquidity, collateral use-cases, and institutional flows. However, the panel emphasized that adoption is still early and depends on building utility, trust, education and regulatory clarity — factors that slow near‑term impact. Historically, similar institutional endorsements (e.g., ETF approvals and pilot custody programs) have supported long-term demand but produced mixed short-term price reactions until clear product launches, regulatory frameworks, or measurable flows materialize. For traders: expect increased interest in on‑chain liquidity providers, stablecoins and infrastructure tokens over months to years, but limited immediate volatility solely from these comments. Monitor regulatory announcements, pilot product launches, and institutional custody/market‑making activity as catalysts that could shift this view to more bullish in the short term.