Fidelity Investments plans to launch its stablecoin while the US is developing new regulatory standards for digital assets.
Fidelity's Stablecoin Testing
According to the Financial Times, Fidelity is in the advanced stages of testing its stablecoin, which will serve as cash in crypto markets and will be managed by Fidelity Digital Assets. This move is part of their broader plans to expand into the tokenized US Treasuries market. Last week, the company filed to launch a digital version of a US money market fund, positioning itself against competitors like BlackRock and Franklin Templeton.
Expected Stablecoin Legislation
As the US develops more crypto-friendly regulatory standards, Trump stated that he expects stablecoin legislation on his desk by August this year. He announced the end of the Biden administration's 'Operation Chokepoint 2.0', which was criticized for its harshness. The Trump-backed crypto project WLFI announced the launch of USD1, a stablecoin for institutional investors, to be custodied by BitGo.
Importance of Stablecoins in the Industry
Stablecoins are crucial to the crypto industry, linking traditional and digital markets, and acting as a growth catalyst. Currently, the total stablecoin market cap is over $234.6 billion. More stablecoin additions facilitate capital flow into the crypto market, driving prices higher.
Fidelity's stablecoin launch plans demonstrate the company's efforts to strengthen its market position amidst evolving regulatory landscapes in the US.
