Asset manager Fidelity Investments is reportedly preparing to launch its own stablecoin. The Boston-based company, which manages more than $5 trillion in assets, is in the advanced stages of testing the coin, the Financial Times (FT) reported Wednesday (March 25), citing sources familiar with the matter. According to the report, the planned launch is part of Fidelity’s expansion into the burgeoning market for tokenized versions of US Treasuries. The report adds that the company has also recently filed to introduce a digital version of a U.S. money market fund at the end of May, which would put it in competition with rival asset management groups BlackRock and Franklin Templeton. As the report notes, Fidelity is making these efforts at a time when federal regulators are changing their attitude toward cryptocurrencies in the wake of President Donald Trump’s election last year. Trump had embraced crypto on the campaign trail—marking a contrast with the stricter approach by the Biden White house—and has pledged to promote the growth of dollar-backed stablecoins. There is also a pair of stablecoin bills before Congress. Fidelity published a report earlier this year arguing that central banks and world governments would be among the next ‘significant investors’ in bitcoin. That report noted that while many countries hold bitcoin, it is typically through government seizures and recoveries from criminal prosecutions. Many governments also have rules for the selling or handling of this bitcoin and can’t list them as part of their treasury. ‘We expect 2025 to be the year this changes for both acceptance and adoption,’ wrote Fidelity’s Matt Hogan. ‘This is to say, we anticipate more nation-states, central banks, sovereign wealth funds, and government treasuries will look to establish strategic positions in bitcoin.’ Meanwhile, PYMNTS wrote last week about use cases for stablecoins beyond crypto market liquidity, with applications that include cross-border payments. ‘Traditional international transactions remain slow and expensive, burdened by correspondent banking networks and legacy financial systems,’ that report said. ‘Stablecoins, pegged to fiat currencies, promise a faster and cheaper alternative. By leveraging blockchain rails, stablecoins can bypass intermediaries, facilitating near-instantaneous settlements at potentially lower costs.’

Fidelity Reportedly Preparing to Debut In-House Stablecoin

Fidelity Investments, a Boston-based asset manager with over $5 trillion in assets, is reportedly preparing to launch its own stablecoin. The Financial Times reported that Fidelity is in the advanced stages of testing the coin, which is part of the company's expansion into the tokenized US Treasuries market. Additionally, Fidelity is planning to introduce a digital version of a U.S. money market fund, which will put it in competition with rivals BlackRock and Franklin Templeton.