Fidelity is reportedly in advanced testing phases of its own stablecoin as part of its digital asset expansion, the Financial Times reported on March 26.
However, a company spokesperson told Reuters that the firm does not have plans to launch the stablecoin in the near term.
Earlier this month, a Fidelity unit filed to launch a tokenized money market fund. Under the proposal, investor shares would be recorded on the blockchain via conventional electronic recordkeeping systems, signaling the firm’s continued interest in exploring blockchain applications within existing financial products.
Stablecoin market in the spotlight
Fidelity’s potential move comes amid a wave of institutional interest in stablecoins, driven by clearer regulatory signals and growing adoption in the US under President Donald Trump’s administration.
The stablecoin sector currently commands a $231 billion market cap and processed $27.6 trillion in transfer volume last year, outpacing both Visa and Mastercard.
Interest in stablecoins is rising rapidly since they offer fast, borderless, and cost-efficient settlement that outperforms traditional financial infrastructure. Institutions see stablecoins as a more efficient alternative to legacy systems.
The surge in adoption comes as regulatory clarity begins to take shape, with bipartisan legislation in the US paving the way for compliant issuance.
At the same time, stablecoins are gaining geopolitical relevance, as dollar-pegged tokens are viewed as a way to reinforce the US dollar’s dominance in a global economy facing competition from CBDCs and rival currencies.
Beyond stablecoins, the broader trend of tokenizing real-world assets (RWAs) continues to gain momentum. On March 25, the market for tokenized U.S. Treasuries surpassed $5 billion, with over half of that value managed by traditional finance heavyweights like BlackRock and Franklin Templeton.
Given Fidelity’s scale — managing $5.9 trillion in assets as the world’s third-largest asset manager — its growing interest in the space reflects a broader institutional shift.
Regulatory tailwinds
The regulatory environment for stablecoins is also rapidly evolving. On March 13, the Senate Banking Committee passed the bipartisan GENIUS Act in an 18-6 vote.
Introduced by Senator Bill Hagerty, the legislation seeks to establish clear rules for the issuance and oversight of stablecoins in the US. One key provision would require U.S. dollar-pegged stablecoins to maintain full 1:1 reserves in cash, insured bank deposits, or short-term Treasury bills.
Bo Hines, Executive Director of the Presidential Working Group on Digital Assets Markets, stated on March 18 that a regulatory framework for stablecoins could be approved by Trump within two months.
Mentioned in this article
