a16z crypto show Why Tokenize? Fidelity on Onchain Assets and the Next Phase of Adoption
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Mar 4, 2026 Cynthia Lo Bessette, Head of Digital Asset Management at Fidelity, leads the firm’s tokenization and on-chain product strategy. She outlines the three phases of adoption, explains why tokenization must enable real utility, and discusses tokenized money market funds, real-world assets moving on-chain, and build-versus-partner decisions.
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Three Phases Of Digital Asset Adoption
- Tokenization's value depends on on-chain utility, not just representation as a token.
- Cynthia Lo Bessette frames adoption in three phases: Hold (ETPs), Use (mobile on-chain utility, collateral, yield), and Build (on-chain portfolio construction).
Begin Tokenization By Proving Onchain Utility
- Start tokenization projects by asking why an asset should be on-chain and who will use it.
- Build ecosystem relationships and infrastructure first so the token can actually be used on-chain, as Fidelity did for a tokenized money market fund.
Issuance Requires Ecosystem Work Not Just Tokens
- Issuing a token is only the start; making it usable requires ecosystem development and relationships.
- Fidelity spent significant time building infrastructure and partners to support token issuance and on-chain usability.