Fidelity Plans to Launch a Stablecoin, Currently in the Late Stages of Testing

Fidelity Plans to Launch Its Own Stablecoin Amid U.S. Regulatory Developments

According to a report by the Financial Times citing informed sources, as the United States prepares to introduce its first regulatory framework for cryptocurrencies, asset management company Fidelity Investments is planning to launch its own stablecoin, further advancing its position in the digital asset space.

Two informed sources revealed that Fidelity’s testing of its token is in the late stages. The stablecoin is designed to serve as cash for the cryptocurrency market and will be managed through its digital assets division.

This initiative by Fidelity is part of its expansion into the emerging tokenized U.S. Treasury market. Last week, the company registered an “on-chain” share class for the Fidelity Treasury Digital Fund (FYHXX), allowing the security to be recorded on the Ethereum blockchain, providing investors with transparency and verifiable transaction tracking.

Related report: “Tokenized Treasury Market Surpasses $5 Billion, Fidelity Emphasizes the Potential of RWA as Collateral.”

In another development on Tuesday, the decentralized finance project World Liberty Financial (WLFI), supported by the Trump family, announced its plan to launch a dollar stablecoin USD1. This token will be 100% backed by U.S. short-term treasuries, dollar deposits, and other cash equivalents, and will first be issued on the Ethereum blockchain and Binance Smart Chain (BSC).

Related report: “WLFI, Backed by Trump Family, Plans to Issue Institutional-Grade Stablecoin USD1, with Reserves Custodied by BitGo.”

Last week, U.S. President Donald Trump delivered a pre-recorded address at a digital asset summit, calling on Congress to establish simple and rational regulations for stablecoins and market structures. He stated, “With the right legal framework, institutions of all sizes will be able to invest, innovate, and participate in one of the most exciting technological revolutions in modern history.”

On March 13, the U.S. Senate Banking, Housing and Urban Affairs Committee passed a stablecoin regulatory bill known as the “American Stablecoin Innovation and Establishment Act” (GENIUS Act), aimed at regulating U.S. stablecoin issuers at the federal level. The bill still needs to be approved by the full Senate, and a similar measure is awaiting approval in the House of Representatives.