Fidelity Investments is in advanced stages of the development of its own stablecoin, the Financial Times reported Wednesday.
The Boston-based Financial Services Giant plans for the token to act as a form of digital cash, according to the report citing two people close to the case.
The token would form part of the company’s strategy to enter the market for tokenized government bonds. Stableecoins are a cryptocurrency whose value is linked to a real asset like the US dollar or gold. They provide a convenient way for crypto traders to preserve their Fiat value without having to cash out of the market.
The news comes only a few days after Fidelity filed paperwork to register a blockchain-based version of its US Dollar-Manking Market Fund.
The company is trying to register an “onchain” share in its Treasury Digital Fund (FYHXX), which has cash and US state papers and is only available to Fidelity’s hedge fund and institutional clients. A Fidelity -StableCoin could fill the role of cash in this fund.
StableCOin would enter an already crowded market dominated by them like Tether’s USDT and Circle’s USDC. The report comes a day after the World Liberty Financial (WLFI), a decentralized financing protocol supported by President Donald Trump, confirmed that it also plans to offer a stablecoin.
Fidelity did not immediately respond to Coindesk’s request for further comment.
