Fidelity prepares to launch its own stablecoin
Fidelity prepares to launch dollar‑pegged stablecoin for crypto markets.
Fidelity Investments is advancing plans to issue its own U.S. dollar‑pegged stablecoin, joining a growing cohort of asset managers entering the digital‑asset payments space.
The firm says its token — currently in advanced testing — will function as “cash” for crypto markets, deepening Fidelity’s push into digital finance as U.S. regulators finalize a stablecoin framework, reports Cryptopolitan.
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Key Takeaways
- Stablecoin Rollout: Fidelity is testing a dollar‑pegged stablecoin managed by its Digital Assets arm, with launch expected imminently.
- Market Context: Total stablecoin supply has surged to $225 billion, and President Trump has directed Congress to pass stablecoin legislation by August.
- Competitive Landscape: Fidelity joins Ripple (RLUSD), Tether (USDT) and World Liberty Financial in the race to issue regulated stablecoins.
- Tokenized Funds: Concurrently, Fidelity filed to register its Fidelity Treasury Digital Fund (FYHXX) — a tokenized money market fund — with the SEC for a May 30 effective date.
Fidelity Enters Stablecoin Arena
Two sources familiar with Fidelity’s plans confirmed that the stablecoin is designed to serve as cash for crypto transactions, leveraging the firm’s custody and compliance infrastructure. The announcement arrives as the U.S. Treasury and White House push to codify stablecoin regulation, with Treasury Secretary Scott Bessent stating that stablecoins will help “keep the U.S. dollar the dominant reserve currency.”
Fidelity stock chart. Source: Yahoo Finance
President Trump’s Crypto Summit on March 7 underscored stablecoin legislation as a top priority before Congress’s summer recess.
Tokenized Treasury Fund Filing
In tandem with its stablecoin, Fidelity filed with the SEC to register the Fidelity Treasury Digital Fund (FYHXX), a tokenized U.S. money market fund.
The OnChain share class currently operates on Ethereum, with plans to expand to other blockchains. The fund — holding cash and U.S. Treasuries — is slated to go live May 30, pending regulatory approval. Fidelity believes tokenization will streamline collateral management and margin requirements in capital markets.
Broader Industry Implications
Fidelity’s entry signals growing institutional commitment to digital assets. Competitors such as BlackRock (BUIDL) and Franklin Templeton have already launched tokenized Treasury products, and Ripple recently unveiled RLUSD. As stablecoin market cap approaches $230 billion, industry analysts predict that regulated, institution‑grade stablecoins will drive deeper integration between traditional finance and DeFi, reshaping payments and liquidity management.
Recently we wrote, that Fidelity Investments, a major U.S. financial services holding company, has officially launched a new blockchain-based tokenized fund backed by U.S. Treasury bonds.
