A leading investment firm is reportedly making significant strides toward creating its own stablecoin, as indicated by recent news.
The financial powerhouse based in Boston aims for the token to function as a type of digital cash, according to sources familiar with the situation.
This digital currency would be a key component of the company’s efforts to tap into the tokenized government bonds sector. Stablecoins are cryptocurrencies designed to maintain a stable value by being pegged to real-world assets like the U.S. dollar or gold, offering traders a reliable means to retain their fiat value without leaving the cryptocurrency market.
This announcement follows closely on the heels of the firm’s application to register a blockchain-based version of its U.S. dollar money market fund.
The firm is looking to create an “OnChain” share class of its Treasury Digital Fund (FYHXX), which comprises cash and U.S. Treasury securities and is exclusively available to its hedge fund and institutional clients. The forthcoming stablecoin could serve as cash for this fund.
This new entrant would join a market already saturated with established players like Tether’s USDT and Circle’s USDC. The update comes just a day after a decentralized finance protocol, supported by a notable figure, revealed its own plans for launching a stablecoin.
The investment firm has yet to provide any further statements regarding this development.