At the time of writing, Fidelity Investment was in the advanced stages of testing its token, which was developed to serve as cash in cryptocurrency markets. According to two individuals familiar with the matter cited by Financial Times, the token is set to be managed via the company’s digital assets arm.
The decision to roll out the stablecoin comes as part of Fidelity’s expansion into the market for tokenized versions of US Treasuries, with the company already being involved in digital assets for over 10 years. Additionally, Fidelity filed to introduce a digital version of a US money market fund at the end of May 2025. This move would position the firm as direct competition for traditional asset manager companies like BlackRock and Franklin Templeton.
Furthermore, Fidelity’s decision to deepen its presence in the digital asset market comes amidst substantial changes in the oversight of cryptocurrencies after the election of President Donald Trump, with him aiming to promote the expansion of lawful and legitimate USD-backed stablecoins to assist the US currency. Also, Trump requested supporting legislation to be ready to be signed into law by August 2025.
In addition to Fidelity Investment, other US companies have announced their plans to roll out stablecoins. Among them was World Liberty Financial, a crypto firm associated with Donald Trump, which intended to launch a stablecoin developed to maintain a one-to-one peg with the USD. Known as USD1, the digital asset was set to be supported by short-term US Treasury bonds, dollar deposits, and other cash-equivalent reserves. Additionally, BitGo Inc. had been designated as the custodian, with the tokens initially being issued on the Ethereum and Binance Smart Chain networks.
Moreover, as detailed in a recent expert opinion piece on The Paypers, stablecoins have the potential to become a standard component of the global payments ecosystem. More institutions are integrating stablecoin solutions into their operations, while many others are looking into developing their own tokens. Among the prospective benefits, stablecoins could minimise transaction costs, improve liquidity, scale transparency, and accelerate settlements.
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