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Fidelity’s US Dollar-Pegged Stablecoin Set for May Launch: Report

Fidelity Investments – one of the largest asset managers in the United States – is nearing the launch of its own US dollar-pegged stablecoin.

This move comes at a time when the regulatory landscape for cryptocurrencies in the US has grown more favorable, particularly under the Trump administration’s friendly policies.

Fidelity Testing US Dollar-Pegged Stablecoin

According to the latest ataskaita by the Financial Times, the financial giant is in the final stages of testing the stablecoin through its digital assets division, Fidelity Digital Assets. The stablecoin is expected to debut by the end of May and is part of a broader push by the firm into the cryptocurrency sector.

In addition to the stablecoin, Fidelity has recently filed with the US Securities and Exchange Commission (SEC) to launch an Ethereum-based “OnChain” share class for its Treasury Digital Fund, which invests primarily in US Treasury securities.

Fidelity’s stablecoin initiative comes as the stablecoin market continues to grow, with companies like Tether with USDT and Circle with USDC holding the lion’s share. The market is currently worth around $235 billion and has seen an influx of traditional financial firms eyeing the space, spurred by regulatory clarity around stablecoin issuance.

Stablecoin Innovation Amid Crypto Regulatory Shift

It is important to note that Fidelity’s involvement in the market highlights a wider trend of institutional adoption of blockchain-based financial products, such as PayPal’s launch of its own stablecoin, PayPal USD (PYUSD), in 2023.

Especially following President Donald Trump’s election, a growing number of US financial institutions are venturing into cryptocurrency-based products, owing to the much-anticipated shift in policy direction. For instance, Custodia and Vantage Bank have pristatė the country’s first-ever bank-issued stablecoin this week, which is built on the open Ethereum blockchain.

World Liberty Financial (WLFI), a DeFi project backed by US President Donald Trump, pristatė a stablecoin named USD1. The coin will be fully backed by short-term US government treasuries, dollar deposits, and cash equivalents. Initially, USD1 tokens will be issued on both the Ethereum and Binance networks, with future plans to expand to additional blockchains.

Each USD1 token is designed to hold a consistent value of $1, backed by a reserve portfolio that is periodically audited by an independent third party.

Pranešimas Fidelity’s US Dollar-Pegged Stablecoin Set for May Launch: Report appeared first on CryptoPotato.


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