- Fidelity is launching its own stablecoin, strengthening its role in digital assets as the U.S. moves toward stablecoin regulation.
- Tokenized Treasuries have surpassed $5 billion, and Fidelity’s stablecoin could boost their role in modern finance.
One of the largest asset managers in the world, Fidelity Investments is reportedly in the final stages of testing its own stablecoin, according to the Financial Times reports. This move reflects a growing trend among traditional financial institutions exploring tokenized assets and stablecoins as they expand into digital finance.
The timing makes sense. The Trump administration supports stablecoins as part of the U.S. financial system. Treasury Secretary Scott Bessant said, “We will keep the U.S. dollar strong, and stablecoins will play a role in that.”
With this step, Fidelity enters a market dominated by Tether (USDT), Circle’s USDC and the recent Ripple’s RLUSD. The company has also filed for a tokenized money market fund, showing its long-term interest in blockchain technology.
Stablecoins and Tokenized Treasuries Are Growing
Fidelity’s stablecoin initiative aligns with the growing trend of tokenized U.S. Treasuries, which have surpassed $5 billion in value, according to RWA.xyz. These blockchain-based assets are increasingly used as collateral by traders and DeFi platforms, highlighting their rising significance in digital finance.
Cynthia Lo Bessette, head of Fidelity Digital Asset Management, said, “Tokenization will change financial services by making transactions faster and easier.”
Fidelity is going beyond launching a stablecoin—it’s developing a system where digital dollars and tokenized bonds operate together. The company’s recent SEC filing for a tokenized Treasury fund and regulatory approvals signal its ambition to bridge blockchain finance with traditional markets.
Regulators Are Catching Up
Fidelity’s move comes as the U.S. government prepares clear rules for stablecoins, with new regulations expected by August. This is a shift from the previous administration’s cautious approach.
Fidelity’s Assets Under Management (AUM) has over $5.7 trillion in assets. A data from SosoValue also reveals that Fidelity is one of the largest issuer of spot Bitcoin and other ether related exchange funds in the United States. It controls $16 billions in FBTC and over $780 millions worth of FETH.
Stablecoins have been debated for years. Supporters say they improve global payments, while critics worry about risks. Unlike banks, stablecoin issuers do not have strict oversight, raising concerns about transparency.
Despite this, investors are putting billions into tokenized money market funds. Companies like Ondo Finance and Hashnote are pushing tokenized Treasuries as a safer alternative to stablecoins. With Fidelity joining the space, stablecoins are becoming a real part of finance.
However, the company has supported crypto for years, and launching a stablecoin is the next step. If it integrates well into its system, Fidelity could set a new standard for stablecoins.
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