Fidelity Investments Moves Toward Launching Its Own Stablecoin
Fidelity Investments, the renowned Boston-based financial services powerhouse, is reportedly in the advanced stages of developing its own stablecoin, as highlighted in a recent report by the Financial Times. This innovative token is envisioned to function as a form of digital cash, according to sources familiar with the matter.
The introduction of this stablecoin aligns with Fidelity’s broader strategy to penetrate the growing market for tokenized government bonds. Stablecoins, which are cryptocurrencies pegged to stable real-world assets like the U.S. dollar or gold, offer a practical solution for cryptocurrency traders looking to maintain their fiat value without exiting the market.
This announcement comes just days after Fidelity filed for regulatory approval to register a blockchain-based variant of its U.S. dollar money market fund. The company is seeking to establish an “OnChain” share class for its Treasury Digital Fund (FYHXX), which holds cash and U.S. Treasury securities. Notably, this fund is currently available exclusively to Fidelity’s hedge fund and institutional clients, and a Fidelity stablecoin could effectively serve as the cash component within this fund.
However, the stablecoin market is already highly competitive, dominated by established players such as Tether’s USDT and Circle’s USDC. Interestingly, this report follows closely on the heels of an announcement from World Liberty Financial (WLFI), a decentralized finance protocol supported by former President Donald Trump, which also revealed plans to launch its own stablecoin.
As of now, Fidelity has not provided any immediate comment in response to inquiries from CoinDesk regarding this development.
