Prominent asset manager Fidelity is set to rival stablecoin giants Tether and Circle with a stablecoin of its own.
Stablecoins are widely regarded as crypto’s killer application, and their success has meant big business for issuers, who pocket massive interest payments from the treasury bonds held to maintain the token’s peg.
These issuers have long been the envy of legacy finance institutions forced to look on from the sidelines amid a lack of regulatory clarity. However, with this lack of clarity set to change under the President Donald Trump administration, these firms are eager to enter the space. Fidelity, the $5 trillion asset manager, could be the first out of the gate.
Fidelity Stablecoin
Specifically, Fidelity is setting out to rival stablecoin giants Tether and Circle. On Wednesday, the Financial Times reported that Fidelity was planning to launch a stablecoin and was already in the advanced stages of testing.
Two anonymous sources reportedly told the outlet that the token would act as cash in the crypto market and be managed by Fidelity’s digital asset arm.
The stablecoin launch seems to be an extension of the firm’s expansion into tokenization, another rapidly growing blockchain sector. Specifically, last week, the firm filed to launch a blockchain-based version of a U.S. money market fund, joining competitors like BlackRock and Franklin Templeton, which have done so.
Meanwhile, Fidelity’s move comes as President Donald Trump has made stablecoins the priority of his crypto policy agenda. Notably, one stablecoin bill is already set for a Senate vote.
Considering the profit potential of the stablecoin business and the anticipation of regulatory clarity, Fidelity is likely one of many legacy finance firms plotting a foray into the sector.
Beyond Fidelity, the Trump-backed decentralized finance project World Liberty Financial and crypto native bank Custodia have confirmed stablecoin plans over the past 24 hours.
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