Fidelity Investments is in the advanced stages of developing its own Stablecoin, reported by the Financial Times on Wednesday.
The Boston-based financial services giant is planning to function as a form of digital cash, according to a report citing two people close to the issue.
Tokens form part of the company's strategy to enter the tokenized government bond market. Stablecoins are cryptocurrencies whose value is fixed to real-world assets such as US dollars and gold. They provide a convenient way for crypto traders to maintain the value of Fiat without acquiring them from the market.
The news comes just days after Fidelity filed the documents to register a blockchain-based version of the US Dollar Money Market Fund.
The company holds cash and US Treasury securities and aims to register as a “on-chain” share class of the “Treasury Digital Fund (FYHXX)” that is only available to Fidelity hedge funds and institutional clients. The faithful stubcoin can fill in the role of cash in this fund.
Stablecoin will enter an already crowded market, dominated by Tether's USDT and Circle's USDC. The report also confirmed that there are plans to provide Stablecoin a day after World Liberty Financial (WLFI), a decentralized financial protocol supported by President Donald Trump.
Fidelity did not immediately respond to Coindesk's request for further comment.
