Fidelity quietly trials its own stablecoin for digital asset tokenization: source

Fidelity Investments is on the verge of completing the testing phase for its own stablecoin as the U.S. government works towards implementing new crypto regulations.

Fidelity Investments, one of the biggest asset management companies globally, is reportedly conducting a silent pilot of its own stablecoin as it delves further into digital assets.

As per a Financial Times article, which refers to two individuals familiar with the situation, the investment firm with $5 trillion in assets under management is in the latter stages of trialing a token that would serve as a form of currency in cryptocurrency markets. The specifics of the project are still unclear, but it is believed that the stablecoin will be managed by Fidelity's digital assets division.

It is uncertain whether Fidelity plans to offer its stablecoin to retail traders in the same open fashion as the two biggest stablecoin issuers, Tether and Circle, or if it will be restricted to institutional investors. As of now, Fidelity has not made any official announcements regarding the matter.

This recent development transpires just days after the Boston-headquartered financial behemoth submitted a proposal to launch a blockchain-based variant of its U.S. dollar money market fund. The proposal, submitted to the U.S. Securities and Exchange Commission, aims to register an "OnChain" share class of the Fidelity Treasury Digital Fund, which invests in cash and U.S. Treasury securities.

As reported earlier by crypto.news, tokenized U.S. Treasury debt has become the second-biggest contributor to the overall value of tokenized real-world assets, with a market capitalization of $4.80 billion, second only to private credit funds, which hold $12.20 billion, according to data from rwa.xyz.