Fidelity Investments is in advanced stages of testing its own stablecoin, which is designed to act as cash in cryptocurrency markets and will be managed through its digital assets arm.
The FT reports that Fidelity’s launch is part of its expansion into the nascent market for tokenised versions of US Treasuries.
Late last week it filed to launch a digital version of a US money market fund at the end of May, in direct competition with traditional asset manager rivals BlackRock and Franklin Templeton.
The move comes as crypto-friendly President Donald Trump pledged to promote the growth of “lawful and legitimate” dollar-backed stablecoins to support the US currency and called for supporting legislation to be ready to be signed into law by August.
In no surprise to anyone, World Liberty Financial, the crypto project promoted by Trump and his sons, has also announced plans to launch its own stablecoin. The coin’s reserves will be backed by short-term US Treasuries and other cash equivalents.