Fidelity to Launch Crypto Stablecoin Amid Regulatory Shifts

• Asset manager Fidelity is exploring to launch of a crypto stablecoin, currently in testing. 
• Stablecoins hit $225 billion in market cap as a result of Trump’s pro-crypto stance. 
• Fidelity’s stablecoin may boost legitimacy and liquidity amid regulatory scrutiny.

Fidelity Investments, one of the leading financial asset management companies, is exploring the launch of stablecoin as part of its broader push into digital assets. The company’s move aligns with its existing offerings, including the Fidelity Digital Assets platform launched in 2018. It has been reported that Fidelity is testing its stablecoin, which is designed to act as cash in cryptocurrency. 

Previously, on March 24, 2025, the company filed for the launch of a digital version of a U.S money market fund, which is set to debut in late May. This move places Fidelity in direct competition with other major asset managers like BlackRock and Franklin Templeton. With this development, Fidelity will be joining other stablecoin domain competitors like Ripple’s RLUSDT and Tether USDT.  

Notably, the launch coincides with significant market trends, with the stablecoin market cap surpassing $225 billion in early 2025, driven by increased adoption and regulatory clarity. With industry forecasts predicting stablecoin market growth to $300 billion by the end of the year, Fidelity’s move could attract major financial players into the sector.  

Related: World Liberty Financial Tests USD1 Stablecoin on Blockchain

The Trump administration has been standing as a crypto-friendly government, providing clear frameworks for the crypto industry. In a recent interview, the US Treasury Secretary, Scott Bessant, stated how the US dollar will continue to dominate the world, with the government making use of stablecoins to do the same. Trump has embraced the crypto sector, advocating for the growth of stablecoins backed by the US dollar. He has urged lawmakers to draft supporting legislation, aiming for passage by August. 

However, regulatory scrutiny around stablecoins, particularly regarding reserve transparency and risks, remains a key concern. The President’s Working Group on Financial Markets has previously warned about stablecoin risks, including potential instability and lack of regulatory safeguards. 

Fidelity is yet to announce an official launch date and is currently under testing. On a broader note, if successful, Fidelity’s stablecoin could provide enhanced liquidity and legitimacy to the digital asset ecosystem. Furthermore, it could encourage institutional adoption, marking a new era for stablecoins and traditional finance integration. 

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