The Stablecoin Shake-Up: Fidelity Enters the Arena

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Fidelity Investments is reportedly nearing the launch of a US dollar-pegged stablecoin, marking a significant step into digital assets as US regulators signal a friendlier stance toward crypto innovation.

According to a March 25 Financial Times report, Fidelity Digital Assets is in the final stages of testing the stablecoin. This move reflects growing institutional momentum around blockchain technology, bolstered by a more favorable regulatory climate under the Trump administration.

Strategic Stablecoin Development

The stablecoin initiative is part of a broader push by Fidelity to expand its crypto-based offerings. The firm is also introducing an Ethereum-based “OnChain” share class for the Fidelity Treasury Digital Fund (FYHXX), an $80 million US dollar money market fund comprised primarily of US Treasury bills.

Also read: The New Currency War: Gold-Backed Stablecoins vs. the US Dollar

According to Fidelity’s March 21 filing with the US Securities and Exchange Commission, the OnChain share class aims to improve transaction transparency and tracking. The filing is pending regulatory approval and is expected to take effect by May 30, 2025.

Fidelity’s continued expansion into blockchain-powered financial products signals a long-term strategic commitment, especially as the US works toward clearer digital asset regulations.

Trump Administration Spurs Regulatory Shift

The stablecoin move comes amid a wave of pro-crypto sentiment following President Donald Trump’s election. Trump has publicly stated his intent to make crypto policy a national priority, encouraging traditional financial firms to deepen their digital asset involvement.

Also read: Fidelity Joins Tokenized Asset Race with Ethereum-Based Treasury Fund

Custodia Bank and Vantage Bank recently launched what they’ve called “America’s first-ever bank-issued stablecoin” on the permissionless Ethereum blockchain, described as a “real dollar” rather than a “synthetic” one—a distinction made by Federal Reserve Governor Christopher Waller.

These developments come as the US inches closer to passing stablecoin-specific legislation. The proposed GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins) aims to establish collateralization standards and enforce Anti-Money Laundering compliance.

Also read: DeFi Meets TradFi: Tokenized US Treasuries Power a $5B Blockchain Revolution

Fidelity’s Solana ETF and SEC Outlook

Fidelity’s stablecoin efforts closely follow its recent application to list a Solana (SOL)-based exchange-traded fund (ETF) on the Cboe BZX Exchange. Filed one day prior to news of the stablecoin, the ETF application is being viewed as a potential regulatory “litmus test” for how the SEC treats blockchain-specific ETFs.

Lingling Jiang, a partner at DWF Labs, noted that if the ETF is approved, it could signal the SEC’s recognition of functional differences between blockchain networks. This, in turn, may accelerate the rollout of compliant financial instruments tied to next-generation assets.

Also read: Solana ETFs: Understanding Their Impact

Such a move would not only influence Solana’s trajectory but could expand the range of tokenized products available to institutional investors, driving liquidity and signaling broader regulatory maturity in the digital asset space.

Author

Steven Walgenbach

Steven's passion for cryptocurrency and blockchain technology began in 2014, inspiring him to immerse himself in the field. He notably secured a top 5 world ranking in robotics. While he initially pursued a computer science degree at the University of Texas at Arlington, he chose to pause his studies after two semesters to take a more hands-on approach in advancing cryptocurrency technology. During this period, he actively worked on multiple patents related to cryptocurrency and blockchain. Additionally, Steven has explored various areas of the financial sector, including banking and financial markets, developing prototypes such as fully autonomous trading bots and intuitive interfaces that streamline blockchain integration, among other innovations.

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