Fidelity Investments is reportedly nearing the completion of testing for a stablecoin pegged to the US dollar, marking the company’s latest move into digital assets amid a more favorable regulatory environment for crypto under the Trump administration.
According to a March 25 report by the Financial Times, citing anonymous sources familiar with the matter, the $5.8 trillion asset management firm intends to launch the stablecoin through its cryptocurrency division, Fidelity Digital Assets.
The stablecoin’s development is said to be part of Fidelity’s broader strategy to expand its crypto-related services. The firm plans to launch an Ethereum-based “OnChain” share class for its US dollar currency market fund.
In a March 21 filing with the US Securities and Exchange Commission, Fidelity stated that the OnChain share class would track transactions of the Fidelity Treasury Digital Fund (FYHXX), an $80 million fund mostly consisting of US Treasury bills. Although regulatory approval for the OnChain share class is still pending, Fidelity expects it to go into effect on May 30.
Source: Securities and Exchange Commission
Following President Donald Trump’s election, more US financial institutions have begun offering cryptocurrency-based products, signaling a shift in policy. Custodia and Vantage Bank recently introduced “America’s first-ever bank-issued stablecoin” on the permissionless Ethereum blockchain, which will be a “real dollar,” rather than the “synthetic” dollar referenced by Federal Reserve Board Governor Christopher Waller called stablecoins in a Feb. 12 speech.
1/ WE TOOK TERRITORY by issuing the first bank-issued #stablecoin on a permissionless blockchain & it's not what you think. 🧵 below. The real impact is on #tradfi–yes, took regulatory territory, but is the real story in what did w/ .
