Key Points
- Fidelity is in he advanced stages of testing its token.
- The stablecoin will be managed via its digital asset arm.
Fidelity Investments plans to launch its stablecoin as the US is preparing its regulatory framework for digital assets.
Fidelity is one of the largest asset managers in the world, with over $5.8 trillion under administration as of last year.
Fidelity Is in the Advanced Stages of Testing its Token
According to the Financial Times, Fidelity is currently in the advanced stages of testing its stablecoin, which will act as cash in crypto markets are will be reportedly managed via the company’s digital assets arm, Fidelity Digital Assets.
The company’s move is part of its broader plan to expand into the market for tokenized versions of US Treasuries.
According to the same reports, last week the asset manager filed to launch a digital version of a US money market fund at the end of May. The company’s direct competitors will be BlackRock and Franklin Templeton.
Fidelity’s plans come as the US is working to strengthen its crypto regulation framework, but this time, with more crypto-friendly policies.
Trump Expects Stablecoin Legislation Before August
As the US is preparing clearer crypto regulations to support the industry, Trump recently stated that he’s expecting stablecoin-related legislation on his desk by August this year.
This comes ahead of a codification into law of his previously signed Executive Order that would establish a Strategic Bitcoin Reserve in the US and a Crypto Stockpile.
Trump recently said that Operation Chokepoint 2.0 came to an end, referring to the previous Biden administration’s crypto regulations that were too harsh and suffocated the industry, without leaving room for development.
Trump promised to promote the growth of “lawful and legitimate” dollar-backed stablecoins to support the US currency. The Trump-backed crypto project WLFI announced yesterday that it will launch USD1, a stablecoin for institutional investors that will be custodied by BitGo.
Stablecoins are an important element in the crypto industry, linking traditional markets with digital ones and representing a catalyst for the ecosystem’s growth.
Currently, the total stablecoins market cap is over $234,6 billion, according to data from DeFi Llama.
More stablecoin additions translate into more capital flowing into the crypto market, pushing prices higher.
