Fidelity Investments is currently in the advanced stages of testing its proprietary stablecoin, designed to function as cash within cryptocurrency markets, and will be overseen by its digital assets division.
According to a report by the FT, this initiative is part of Fidelity’s broader strategy to enter the emerging market for tokenized versions of US Treasuries. Recently, the firm filed to introduce a digital version of a US money market fund by the end of May, positioning itself in direct competition with established asset managers like BlackRock and Franklin Templeton.
This development coincides with efforts from crypto-friendly former President Donald Trump, who has committed to fostering the growth of “lawful and legitimate” dollar-backed stablecoins to bolster the US currency. He has also called for supporting legislation to be prepared for signing by August.
Furthermore, it is noteworthy that World Liberty Financial, a crypto endeavor backed by Trump and his sons, has announced its plans to introduce its own stablecoin, which will be supported by reserves including short-term US Treasuries and other cash equivalents.