Fidelity to Compete with Stablecoin Giants Tether and Circle
The prominent asset manager Fidelity is set to compete with stablecoin giants Tether and Circle, leveraging its own stability.
Stablecoins are widely regarded as a killer application for cryptocurrency, and their success means that issuers can generate substantial interest from the treasury bonds they hold to maintain the token peg.
These issuers have long been the envy of legacy financial institutions, which have been forced to view the space from the sidelines due to a lack of regulatory clarity. However, with the impending changes under President Donald Trump’s administration, these companies are eager to enter the arena. The $5 trillion asset manager Fidelity may be the first to open the door.
Fidelity Stable
Specifically, Fidelity is preparing to compete with stablecoin giants Tether and Circle. According to a report from the Financial Times on Wednesday, Fidelity plans to launch a stablecoin and is already in advanced testing phases.
Reportedly, two anonymous sources informed the media that the token will act as cash in the cryptocurrency market and will be managed by Fidelity’s digital asset division.
The release of the stablecoin appears to be an extension of the company’s expansion into tokenization, another rapidly growing area of blockchain. Notably, last week, the company applied for a blockchain-based version of a U.S. money market fund, joining competitors such as BlackRock and Franklin Templeton in doing so.
Meanwhile, Fidelity’s move coincides with President Donald Trump’s prioritization of stablecoins within his cryptocurrency policy agenda. In particular, a stablecoin bill is reportedly ready for a Senate vote.
Given the profit potential of the stablecoin business and the anticipated regulatory clarity, Fidelity may be one of many traditional financial firms plotting their entry into the industry.
In addition to Fidelity, Trump-supported decentralized finance project World Freedom Finance and crypto-native bank custodian have confirmed stablecoin plans in the past 24 hours.
