Catenaa, Sunday, April 06, 2025- Fidelity Digital Assets, the crypto-focused division of Fidelity Investments, is testing a stablecoin developed in-house, according to sources familiar with the matter. The firm, a $5 trillion asset manager, has not yet announced plans to launch the token to the market.
The stablecoin initiative comes as Fidelity also explores the tokenization of US Treasury markets. Recently, the firm filed to introduce a tokenized version of its US dollar money market fund, marking its deeper dive into the digital asset space.
Fidelity’s move to test a stablecoin aligns with growing efforts in the financial sector to roll out dollar-pegged tokens. Other firms, including World Liberty Financial and BitGo, have recently launched their own stablecoins.
The US Senate is also considering regulations for stablecoins, with the Genius Act gaining traction in the Banking Committee. If passed, the bill could provide clearer guidelines for stablecoin issuers in the US
Introduced in 2014, stablecoins are now a $250 billion market, with Tether’s USDT leading the pack, followed by USD-backed tokens like USDC and USDS. The stablecoin space is poised for further growth as more institutions test and launch new products.
