Fidelity Executive: Currently researching asset tokenization, with a particular focus on stablecoins and tokenized government bond products

ChainCatcher news, Cynthia Lo Bessette, head of Fidelity's digital asset management division, stated that while she is generally satisfied with the market response to Bitcoin and Ethereum ETFs, it is still uncertain what the demand for other cryptocurrency ETFs (such as Solana) will be.

Lo Bessette believes that the SEC may approve ETH ETFs that allow staking of underlying assets in the future, as staking is a key component of the Ethereum ecosystem.

Fidelity is discussing with the SEC the possibility of allowing physical contributions, as all BTC and ETH ETFs currently must be cash-settled.

Fidelity is exploring asset tokenization, with a particular focus on stablecoins and tokenized government bond products. Lo Bessette stated that tokenization should not only consider whether an asset can be represented on-chain, but also whether it should be represented on-chain, with the key being whether it can facilitate activities that traditional capital markets cannot achieve.