Fidelity to Launch a Dollar-Pegged Stablecoin

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Fidelity Investments is reportedly on the verge of launching a stablecoin pegged to the US dollar, marking a significant milestone in its expansion into digital assets. This development coincides with a more favorable regulatory climate for crypto in the US under the Trump administration.

According to a report by the Financial Times on March 25, the $5.8 trillion asset manager is finalizing tests for the stablecoin through its crypto division, Fidelity Digital Assets.

Additionally, Fidelity is introducing an Ethereum-based “OnChain” share class for its US dollar money market fund.

In a March 21 filing with the US Securities and Exchange Commission, the firm stated that this OnChain share class would track transactions of the Fidelity Treasury Digital Fund (FYHXX), which primarily invests in US Treasury bills. Regulatory approval is expected by May 30.