Fidelity Investments is getting ready to launch a stablecoin
Fidelity Investments is getting ready to launch a stablecoin, a type of cryptocurrency tied to the U.S. dollar. This move comes as the U.S. government prepares new laws to regulate stablecoins. These laws could be finalized within the next two months.
Fidelity is one of the largest asset managers in the world, with about $5.8 trillion under management. It is now working on a stablecoin through its crypto division, Fidelity Digital Assets. According to a report by the Financial Times, the company is in the final testing phase.
This stablecoin will be pegged to the U.S. dollar, meaning its value will stay close to $1 at all times. The initiative comes at a time when the regulatory environment in the U.S. appears to be shifting in favor of digital assets, especially under President Donald Trump’s administration. President has already stated that he wants the U.S. to lead in blockchain innovation. His re-election has encouraged crypto companies to expand, hoping for clearer and more supportive regulations.
New Ethereum-Based Investment Product Also in the Works
Along with the stablecoin, Fidelity is also planning to launch a new type of investment product called an “OnChain” share class. This will be part of its Fidelity Treasury Digital Fund (FYHXX), which is worth about $80 million and mostly holds U.S. Treasury bills.
The OnChain share class is built on Ethereum and is designed to make it easier to track and manage transactions. This product is still waiting for regulatory approval, but Fidelity expects it to go live on May 30.
Fidelity’s Solana ETF Filing Seen as Key Regulatory Test
Fidelity’s interest in launching a stablecoin comes shortly after it filed paperwork for a new exchange-traded fund (ETF) based on Solana (SOL). This ETF would be traded on the Cboe BZX Exchange, pending approval. If approved, it could show that U.S. regulators are starting to understand and accept the different technologies behind various blockchains.
The crypto industry is also watching closely for new stablecoin legislation. A proposed law called the GENIUS Act—short for Guiding and Establishing National Innovation for US Stablecoins—could create clear rules for how stablecoins must be backed and ensure they follow anti-money laundering laws. Bo Hines, executive director of the President’s Council of Advisers on Digital Assets, recently said that this bill might reach the president’s desk within two months. If passed, it would be the first major U.S. law focused on stablecoins.