Fidelity Advances into Crypto with Stablecoin Launch Amid Favorable Regulatory Climate

Fidelity Investments, managing $5.8 trillion in assets, is reportedly finalizing a US dollar-pegged stablecoin through its crypto division, Fidelity Digital Assets, according to a March 25 report by the Financial Times. This move aligns with a broader strategy to explore tokenized versions of U.S. Treasuries and follows Fidelity's March 21 filing for an Ethereum-based "OnChain" share class for its Treasury Digital Fund (FYHXX). The OnChain share class, pending regulatory approval, is expected to take effect on May 30. The initiative coincides with increasing regulatory clarity under the Trump administration, which has prioritized crypto-friendly policies. Other firms like Custodia and Vantage Bank have already launched bank-issued stablecoins on Ethereum. The industry also anticipates US stablecoin legislation within the next two months, potentially through the GENIUS Act, which would establish collateralization guidelines and AML compliance. Fidelity's stablecoin push comes as Cboe BZX Exchange seeks to list a Fidelity Solana ETF, potentially signaling the SEC's evolving stance on blockchain assets.