Fidelity Investments Testing Own Stablecoin

Fidelity Investments is in the final stages of testing its own stablecoin as Washington moves toward new crypto oversight.

One of the largest asset managers globally, Fidelity Investments, appears to be quietly piloting its own stablecoin as it expands further into digital assets.

According to a Financial Times report, citing two sources close to the matter, the $5 trillion fund giant is in advanced testing of a token intended to function as cash in cryptocurrency markets. While details remain sparse, the stablecoin is reportedly managed through Fidelity’s digital assets arm.

It remains unclear whether Fidelity plans to make its stablecoin available to retail traders like Tether and Circle or if access will be limited to institutional investors. As of the latest reports, Fidelity has not issued public statements.

Related Development: The latest development comes just days after the Boston-based financial giant submitted a proposal for a blockchain-based version of its U.S. dollar money market fund. The proposal, filed with the U.S. Securities and Exchange Commission, seeks an “OnChain” share class of the Fidelity Treasury Digital Fund, which invests in cash and U.S. Treasury securities.

As reported earlier, tokenized U.S. Treasury debt is now the second-largest contributor to the total value of tokenized real-world assets, with a market capitalization of $4.80 billion, following private credit funds, which hold $12.20 billion, per data from rwa.xyz.

Read more: Cboe BZX officially files 19b-4 for Fidelity’s Solana ETF