Étienne Girard
Fidelity Investments, a powerhouse in wealth management, is actively testing its own stablecoin as part of its venture into the blockchain-based money market fund arena, according to a report from the Financial Times. This move signals the firm’s ambition to blend traditional finance with cutting-edge digital solutions.
Stablecoin to Power Tokenized Fund
The buzz around Fidelity’s stablecoin emerged shortly after the $5.9 trillion asset manager submitted filings to introduce a tokenized money market product on the Ethereum blockchain. This initiative aims to digitize its Treasury Digital Fund, which provides investors access to U.S. dollars and Treasuries. Sources cited by the Financial Times indicate that the stable token will act as digital cash within this blockchain-powered fund, enhancing its functionality.
The tokenized fund sector is gaining traction, with giants like BlackRock and Franklin Templeton already managing over $2 billion in combined assets through similar offerings. Data from RWA.xyz shows this market has soared past $5 billion, reflecting robust growth. Fidelity’s stablecoin could position it as a key player in the booming $238 billion stable token industry, potentially challenging established leaders Tether (USDT), with a $144 billion market cap, and Circle’s USDC, valued at $60 billion.
Regulatory Shifts on the Horizon
Fidelity’s push comes amid evolving U.S. regulatory landscapes for stables. Lawmakers in the Senate and House of Representatives have proposed bills to standardize national stablecoin regulations. The Senate’s GENIUS Act, which garnered bipartisan backing during a March 13 vote in the Senate Banking Committee, is a notable step forward. Industry insiders anticipate a finalized stablecoin framework could land on the White House desk by the end of Q2 2025, potentially reshaping the competitive dynamics for firms like Fidelity, Tether, and Circle.
