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.
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.
Trump had previously indicated that his administration planned to prioritize crypto policy and establish the US as a global leader in blockchain innovation.
Fidelity’s push for a stablecoin comes just one day after Cboe BZX Exchange filed a request to list a proposed Fidelity exchange-traded fund (ETF) that would hold Solana (SOL), according to March 25 filings.
This filing could offer insights into the SEC’s stance on Solana ETFs, as noted by Lingling Jiang, a partner at DWF Labs, a crypto venture capital firm.
Jiang referred to the filing as not just a product proposal but a “regulatory litmus test.” She added that if approved, it would indicate a maturing SEC approach that recognizes the functional differences across blockchains, potentially accelerating the development of compliant financial products tied to next-generation assets, leading to more financial instruments, trading pairs, and market activity.
