Fidelity Nears Launch of US Dollar-Pegged Stablecoin
Fidelity Investments is nearing the completion of testing for a new US dollar-pegged stablecoin, marking a significant step in the company’s expansion into the digital asset space.
This move comes as the regulatory environment for cryptocurrencies becomes more favorable, following shifts in policy under the Trump administration.
According to a report by the Financial Times on March 25, the stablecoin will be launched under Fidelity’s cryptocurrency division, Fidelity Digital Assets.
The asset manager is also launching an Ethereum-based “OnChain” share class for its US dollar money market fund, further emphasizing its commitment to expanding crypto services. This new OnChain class will track transactions related to the Fidelity Treasury Digital Fund (FYHXX), a fund primarily composed of US Treasury bills. Pending regulatory approval, this initiative is expected to be operational by May 30.
READ MORE: SEC Drops Immutable Investigation, Marks Shift in Crypto Oversight
Fidelity’s moves align with a broader trend of increasing crypto-related offerings from US financial institutions, a shift accelerated by Trump’s election. Recently, Custodia and Vantage Bank unveiled the first US bank-issued stablecoin on the Ethereum blockchain, designed to function as a “real dollar” rather than a synthetic one, a distinction highlighted by Federal Reserve Governor Christopher Waller.
In a related development, Fidelity has also filed to list an ETF holding Solana (SOL) on the Cboe BZX Exchange, a step that may provide clarity on how the SEC views Solana ETFs. This filing could serve as an indicator of the SEC’s evolving stance on blockchain-based financial products.
Industry participants are also closely monitoring the potential for upcoming stablecoin legislation in the US, with the GENIUS Act, which seeks to regulate stablecoin collateralization and compliance with Anti-Money Laundering laws, expected to be finalized soon.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
