Crypto News

Fidelity Develops Stablecoin and Tokenized Fund as U.S. Weighs New Crypto Regulations

27 Mar, 2025

Fidelity Develops Stablecoin and Tokenized Fund as U.S. Weighs New Crypto Regulations

**Fidelity Nears Stablecoin Launch, Expands Blockchain Offerings**

Fidelity Investments is finalizing tests for its U.S. dollar-pegged stablecoin, reinforcing its commitment to blockchain-based finance. The $5.9 trillion asset manager plans to integrate the stablecoin into its tokenized U.S. Treasury money market fund on Ethereum. This follows its SEC filing for an on-chain share class of the Treasury Digital Fund (FYHXX), set for approval by May 30.

Other financial institutions are also expanding into stablecoins. Custodia and Vantage Bank recently introduced a bank-issued stablecoin on Ethereum, while BitGo and World Liberty Financial launched USDS and USD1, respectively. These developments align with the U.S. Senate Banking Committee’s approval of the GENIUS Act, a bill aimed at regulating stablecoins with collateralization and AML compliance measures.

The evolving regulatory landscape under the Trump administration is fostering blockchain innovation. Trump has advocated for clear, simple rules to strengthen the U.S. dollar’s dominance in stablecoin markets, prompting financial institutions to accelerate crypto adoption.

Alongside its stablecoin plans, Fidelity is advancing a Solana (SOL)-linked ETF. On March 25, Cboe BZX Exchange filed to list the proposed Fidelity Solana ETF, which analysts view as a key test for the SEC’s stance on Solana-based financial products.

The tokenized finance sector is heating up, with BlackRock and Franklin Templeton managing $2 billion in tokenized money market funds. If Fidelity moves forward, it will compete with stablecoin giants Tether (USDT) and Circle (USDC), which hold a combined market cap of over $200 billion.

As financial institutions deepen their involvement in blockchain, Fidelity’s expansion highlights the growing convergence between traditional finance and digital assets. Regulatory decisions in the coming months will be pivotal for stablecoin adoption and the broader blockchain-based financial ecosystem.