Fidelity Explores Stablecoin Launch Amid Growing Institutional Interest

Fidelity is in advanced testing of its own stablecoin as part of its digital asset expansion, according to a Financial Times report on March 26. While a Fidelity spokesperson told Reuters that there are no immediate plans to launch the stablecoin, this follows a recent filing by a Fidelity unit to launch a tokenized money market fund earlier in March. This move highlights the growing institutional interest in stablecoins, which currently command a $231 billion market cap and processed $27.6 trillion in transfer volume last year. On March 25, the market for tokenized U.S. Treasuries surpassed $5 billion, with over half managed by firms like BlackRock and Franklin Templeton. Regulatory clarity is also increasing, with the Senate Banking Committee passing the bipartisan GENIUS Act on March 13, aiming to establish clear rules for stablecoin issuance in the U.S. Bo Hines, Executive Director of the Presidential Working Group on Digital Assets Markets, stated on March 18 that a regulatory framework for stablecoins could be approved within two months.