Fidelity Investments is nearing the completion of its stablecoin testing phase as regulatory measures surrounding cryptocurrency in Washington evolve.
Fidelity, one of the world’s largest asset management firms, seems to be discreetly testing its own stablecoin as it continues to delve deeper into the realm of digital assets.
A recent report indicates that the $5 trillion investment titan is in the later stages of developing a token designed to operate as cash within cryptocurrency markets. While specifics are still under wraps, this stablecoin is reportedly being overseen by Fidelity’s digital assets division.
The company’s plans to offer the stablecoin to retail investors in a manner similar to leading issuers Tether and Circle remain uncertain, as it may restrict access solely to institutional clients. At this time, Fidelity has not publicly commented on the situation.
This announcement follows closely on the heels of Fidelity’s proposal to create a blockchain-based variant of its U.S. dollar money market fund. The proposal, submitted to the U.S. Securities and Exchange Commission, aims to register an “OnChain” share class of the Fidelity Treasury Digital Fund, which allocates funds into cash and U.S. Treasury securities.
As previously mentioned, tokenized U.S. Treasury debt is now the second-largest contributor to the total worth of tokenized real-world assets, boasting a market cap of $4.80 billion, only surpassed by private credit funds, which stand at $12.20 billion, according to data from rwa.xyz.