Fidelity Investments Is Preparing to Rollout Its Own U.S. Dollar-Pegged Stablecoin

Fidelity Investments is preparing to roll out its own U.S. dollar-pegged stablecoin, marking a significant step forward in the asset manager's ongoing expansion into digital assets.

Fidelity Investments is preparing to launch its own U.S. dollar-pegged stablecoin, marking a significant step forward in the asset manager's ongoing expansion into digital assets.

The Boston-based firm is finalizing tests for the token through its dedicated digital assets division, Financial Times reports.

The forthcoming stablecoin will function as digital cash in crypto markets, aligning with Fidelity's broader strategy of capitalizing on blockchain-based innovations. This move follows its recent filing to issue a tokenized version of a money market fund — a product set to launch in late May — in direct competition with similar offerings from BlackRock and Franklin Templeton.

Fidelity's announcement arrives as U.S. policymakers shift toward more crypto-supportive policies, especially under President Donald Trump's administration. Trump has voiced support for the development of "lawful and legitimate" dollar-based stablecoins and is pushing for regulatory legislation to be passed by August.

"We see tokenization as a transformative shift for financial services," remarked Cynthia Lo Bessette, head of digital asset management at Fidelity.

Highlighting the potential of blockchain-based assets, Bessette explained that they could improve efficiency in capital markets by serving as collateral in trading and reducing settlement times.

The U.S. stablecoin landscape is currently under review, with lawmakers debating competing proposals that aim to regulate these digital tokens. Typically backed one-to-one by U.S. Treasuries and designed to maintain a fixed dollar value, stablecoins are being touted as a way to modernize finance and reduce transaction friction. However, critics view them as posing risks to financial stability and consumer protection.

Currently, there are over $230 billion in stablecoins circulating globally, the majority of which are issued offshore by firms like Tether USDT/USD, based in El Salvador. U.S.-based financial institutions are now entering the space, seeking to offer more regulated, onshore alternatives.

In addition to Fidelity, firms such as Ondo Finance ONDO/USD and Hashnote — backed by Circle USDC/USD — are exploring interest-bearing tokenized products that function as immediate collateral. These security-like digital instruments have attracted over $5 billion in deposits, though they are still building the liquidity seen in established stablecoins.

On the same day as Fidelity's development, Trump-affiliated crypto venture World Liberty Financial confirmed plans to release its own stablecoin, USD1. That coin will be backed entirely by short-term U.S. Treasuries and similar cash-equivalent assets.