Fidelity Investments Plans to Launch Its Own Stablecoin Amid U.S. Regulatory Framework Development
According to reports from the Financial Times quoting 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 final stages. This stablecoin aims to serve as cash in 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” stock 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 Value Surpasses $5 Billion, Fidelity Highlights 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 plans to launch a dollar stablecoin USD1. The token will be 100% backed by U.S. short-term Treasuries, dollar deposits, and other cash equivalents, and will initially be issued on the Ethereum blockchain and Binance Smart Chain (BSC).
Related report: “WLFI Plans to Issue Institutional-Grade Stablecoin USD1, Reserves Custodied by BitGo.”
U.S. President Donald Trump delivered a pre-recorded speech at the Digital Assets Summit last week, calling on Congress to establish simple and reasonable 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 (referred to as the Banking Committee) passed a stablecoin regulatory bill called the “American Stablecoin Innovation and Establishment Act” (GENIUS Act), which aims to regulate U.S. stablecoin issuers at the federal level. The bill still requires approval from the full Senate, while a similar bill awaits approval from the House of Representatives.
