Fidelity Investments Tests Dollar-Pegged Stablecoin

Elizabeth Haucroft

(Reuters) – US Asset Manager Fidelity Investments is investigating whether to launch its own Stablecoin, with the latest indication of mainstream investors looking to win cash in a revival of cryptocurrency interest.

Stablecoins are a kind of cryptocurrency designed to maintain a constant value. It is usually a 1:1 dollar peg, which makes it easier for traders to move their funds between cryptocurrencies. Their use has grown rapidly in recent years.

A spokesman for Fidelity said the company’s digital assets division was in the process of testing Stablecoin, but there were no plans to launch it.

The Financial Times first reported the news, saying Fidelity Investments planned to launch Stablecoin and was in an advanced stage of testing the token.

According to data provider Coingecko, there are around $239 billion worth of stubcoins in circulation. The largest issuer, El Salvador-based Tether has created more than $140 billion in tokens.

US President Donald Trump’s show in support of the crypto industry has prompted mainstream financial institutions to explore more crypto-related products.

Trump’s Crypto Venture World Liberty Financial announced on Tuesday it plans to launch a Stablecoin, backed by the US Treasury Department, dollars and other cash equivalents.

US asset managers have made previous moves in the crypto industry after the product was approved by US regulators in January 2024, for example, by launching exchange industry funds to track the price of exchangers’ Bitcoin.

On March 21, another digital asset business within Fidelity Investment was submitted to launch a tokenized money market fund. In this fund, buyer stocks are recorded via blockchain and standard electronic records.

(Reporting by Elizabeth Howcroft in pariseding by Tommy Regiori Wilkes and Franklin Paul)