title: Fidelity Investments to Launch Its Own Dollar-Backed Stablecoin

The asset management titan Fidelity Investments reportedly plans to roll out its own dollar-backed stablecoin.

Asset management giant Fidelity Investments is reportedly planning to launch its own dollar-backed stablecoin, according to the Financial Times.

Asset management giant Fidelity Investments is reportedly planning to launch its own dollar-backed stablecoin, according to the Financial Times.

Citing two people familiar with the matter, the outlet reports that the Boston-based firm with $5 trillion in assets under management (AUM) is now in the advanced stages of testing the crypto asset.

Citing two people familiar with the matter, the outlet reports that the Boston-based firm with $5 trillion in assets under management (AUM) is now in the advanced stages of testing the crypto asset.

Fidelity’s digital assets arm will manage the stablecoin, which is designed to function as cash in cryptocurrency markets.

The report says the company is launching the stablecoin as part of its expansion into the nascent market for tokenized versions of U.S. Treasury bonds. Last week, the asset manager also filed with the SEC to register a blockchain-based version of the Fidelity Treasury Digital Fund.

The development comes as Donald Trump has voiced support for dollar-backed stablecoins. The president has pledged to promote the growth of stablecoins in a bid to strengthen the dominance of the dollar and urged Congress to pass legislation establishing regulatory clarity for the assets.

Lawmakers are currently working to pass the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, which would restrict what types of investments the assets can use for collateral.

Senator Bill Hagerty (R-TN), who is sponsoring the bill, says that a regulatory framework for stablecoins can help to boost demand for the U.S. Treasury.

"This legislation is a critical first step in establishing a safe and pro-growth regulatory framework that will unleash innovation and advance the President's mission to make America the world capital of crypto."