Fidelity Investments to Launch Own Stablecoin, Entering Tokenized US Treasuries Market

Changing Environment Under Trump Administration

Fidelity Investments, the Boston-based $5 trillion asset management firm, is reportedly planning to launch its own stablecoin. The stablecoin launch is seen as heralding Fidelity’s entry into tokenized versions of U.S. Treasuries. According to a Financial Times report, the asset manager’s digital assets division will manage the stablecoin.

The report, which cites anonymous sources, states that Fidelity is in the advanced stages of testing the token, which is expected to compete with Tether-issued USDT and USDC. At the time of writing (March 26, 12 p.m. EST, data from defillama.com showed that USDT ($144.698 billion) and USDC ($60.1 billion) account for close to 90% of the stablecoin market capitalization.

The revelation of Fidelity’s stablecoin launch plans came less than a week after the asset management firm filed to launch a digital version of a U.S. money market fund at the end of May. This fund is expected to compete with those of rivals Blackrock and Franklin Templeton. Like Fidelity, the two rival asset management firms are involved in digital assets and are looking to take advantage of the U.S.’s changed stance on cryptocurrencies under the Trump administration.

Speaking at the recently held Digital Asset Summit, former U.S. President Donald Trump urged Congress to pass legislation on stablecoins, stating he wants this ready to be signed into law by August.

Meanwhile, Cynthia Lo Bessette, head of digital asset management at Fidelity Investments, is quoted in the report discussing tokenization, which she foresees transforming the financial services industry. She provided an example in which tokenized assets are used as collateral to meet margin requirements in trading.