Fidelity Investments is in advanced stages of developing its own stablecoin, the Financial Times reported on Wednesday.
Financial services firm Fidelity Investments is in the advanced stages of developing its own stablecoin, the Financial Times reported on Wednesday.
The Boston, Massachusetts-based company plans for the token to be used as a form of digital cash, the report said, citing two people familiar with the matter. The token would also be part of Fidelity’s broader strategy to enter the tokenized government bonds market.
Stablecoins are a type of cryptocurrency whose value is linked to a specific asset, such as the U.S. dollar or gold. They offer a way for crypto traders to hold fiat value without having to cash out of the market.
The news comes just days after Fidelity filed paperwork to register a blockchain-based version of its U.S. dollar money market fund.
The company is planning to register an “OnChain” share class of its Treasury Digital Fund (FYHXX), which invests in cash and U.S. Treasury securities and is currently available only to hedge funds and other institutional clients. A Fidelity stablecoin could be used to perform the role of cash in this fund.
The stablecoin would be launched into an already competitive market, which is currently dominated by the likes of Tether’s USDT and Circle’s USDC.
The report comes a day after World Liberty Financial (WLFI), a decentralized finance protocol backed by President Donald Trump, confirmed it is planning to launch a stablecoin.
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