Fidelity is ready to launch a stablecoin pegged to the dollar

Fidelity Investments is preparing to launch a stablecoin pegged to the US dollar, marking another significant step in its expansion into digital assets. The move comes in a context of increasing regulatory openness towards cryptocurrencies in the United States. According to a recent Financial Times survey, the 5.8 trillion dollar giant is concluding tests on the stablecoin through its division, Fidelity Digital Assets.

In the meantime, the company introduces an innovative class of shares based on Ethereum for its dollar money fund, confirming the growing interest in blockchain. At the same time, Fidelity has also submitted a request to the Securities and Exchange Commission (SEC) to list an exchange-traded fund (ETF) on Solana, an operation that could become a crucial test for the future of ETFs based on digital assets.  

These latest initiatives are part of a broader context of blockchain adoption in the traditional financial sector. Custodia Bank and Vantage Bank have recently launched the first stablecoin issued by a U.S. bank on Ethereum, highlighting the growing institutional interest in cryptocurrencies.  

Fidelity’s commitment to cryptocurrencies: stablecoin and blockchain funds  

Fidelity is accelerating its experimentation with stablecoins, a rapidly growing sector thanks to the advantages offered by blockchain in terms of liquidity and stability. The stablecoin being tested will be pegged to the US dollar and could represent a fundamental piece for Fidelity’s expansion in digital payments and decentralized finance.  

In addition to the stablecoin, the financial giant is also pushing for the integration of blockchain into traditional products. In a document filed with the SEC on March 21, Fidelity introduced a new type of share class based on Ethereum, called “OnChain Share Class”, linked to the Fidelity Treasury Digital Fund (FYHXX), an 80 million dollar fund primarily invested in US Treasury securities. Approval by the SEC is expected by May 30, and if obtained, it would mark a turning point in the use of blockchain in more established financial sectors.

A signal from politics: regulatory openness and financial innovation  

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The moves by Fidelity and other financial institutions occur in a context of greater regulatory openness in the United States towards the cryptocurrency sector. After the reelection of President Donald Trump, several experts have highlighted a change in federal policy on cryptocurrencies.

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An additional signal of this transformation is observed in the increase in the number of institutional players exploring the issuance of stablecoins. Custodia Bank and Vantage Bank have just launched “Avit”, the first stablecoin issued by a U.S. bank on Ethereum, based on the ERC-20 standard. This development aims to integrate innovative digital tools within traditional finance and could represent a model followed by other banks.  

ETF on Solana: Fidelity tests the digital asset market  

In addition to stablecoins and digital funds, Fidelity has filed an application with the Cboe BZX Exchange to list a Solana (SOL)-based ETF. The SEC will have to rule on this proposal, and analysts believe that the outcome of the decision could serve as a benchmark for the regulatory treatment of alternative cryptocurrency ETFs.  

According to Lingling Jiang, partner at DWF Labs, Fidelity’s initiative could serve as a regulatory test to assess the SEC’s attitude towards ETFs linked to non-traditional digital assets. If approved, this ETF on Solana could pave the way for new financial products based on blockchain, promoting greater institutional adoption of criptovalute.

Stablecoin and institutional adoption: a growing market  

The stablecoin sector is experiencing exponential growth. In the last year, the number of active wallets using stablecoins has increased by over 50%, rising from 19.6 million to 30 million. This data highlights a boom in institutional adoption and the integration of decentralized finance with traditional systems.  

The increase in the use of stablecoin is driven primarily by:  

• Increased use in digital payments
• Expansion in the decentralized finance ecosystem (DeFi)
• Increased integration with financial institutions

Stablecoins are now considered an essential tool in the digital economy, offering stability and liquidity in a highly volatile market.  

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The future prospects: regulation and financial innovation  

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In the United States, a new legislation on stablecoins is under discussion: the GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins). This bill aims to implement strict rules on the collateralization of stablecoins and to strengthen anti-money laundering (AML) compliance obligations.

If approved, the new regulation could establish a clear framework for stablecoins in the United States, fostering innovation without compromising financial stability.  

In conclusion, Fidelity and other major financial players are accelerating the adoption of blockchain, while the regulatory landscape evolves to accompany this transformation. The imminent launch of a stablecoin pegged to the dollar and the expansion of new digital products mark a crucial moment for the integration of cryptocurrencies into the global economic system.