From Yahoo Finance: 2025-03-26 11:06:00

U.S. asset manager Fidelity Investments is considering launching its own stablecoin, as mainstream investors seek to capitalize on renewed interest in cryptocurrencies. Stablecoins are designed to maintain a constant value, typically pegged to the dollar, facilitating easier fund transfers between cryptocurrencies. Fidelity’s digital asset arm is currently testing a stablecoin, but has no immediate plans for a launch.

According to the Financial Times, Fidelity Investments is in advanced testing stages for a stablecoin launch. The stablecoin market is valued at approximately $239 billion, with El Salvador-based Tether leading with over $140 billion in circulation, earning interest on reserves backing the coin. Trump’s support for the crypto industry has spurred financial institutions to explore more crypto products.

Following Trump’s lead, World Liberty Financial announced plans for a dollar-pegged stablecoin backed by U.S. Treasuries and cash equivalents. U.S. asset managers are venturing into the crypto industry, including launching bitcoin-tracking exchange-traded funds after U.S. regulators approved these products in January 2024. Fidelity Investments’ digital asset division is also seeking to launch a tokenized money market fund, recorded on blockchain.

Fidelity Investments and other mainstream financial institutions are exploring stablecoin launches and other crypto-related products in response to growing interest and regulatory approvals. Trump’s support for the crypto industry has spurred these developments, with Fidelity’s digital asset arm testing a stablecoin and filing for a tokenized money market fund. The stablecoin market is worth $239 billion, with Tether leading with over $140 billion in circulation.



Read more at Yahoo Finance: Fidelity Investments tests dollar-pegged stablecoin