Fidelity Investments is in advanced stages of development of its own stablecoin, the Financial Times reported on Wednesday.
The Boston -based financial services giant provides that the token serves as a digital cash shape, according to the report, which cites two people nearby.
The token would be part of the company’s strategy to enter the tokenized government bond market. Stablecoins are a cryptocurrency whose value is set to a real asset such as the US dollar or gold. They provide a practical way for crypto merchants to preserve their fiduciary value without having to withdraw the market.
The news emerges only a few days after Fidelity has filed documents to record a version based on the blockchain of its American monetary market fund.
The company seeks to record a class of “onchain” shares of its Treasury Digital Fund (FYHXX), which holds cash and American titles and is only available for the Hell Fund in Fidelity and institutional customers. A fidelity stable could fulfill the role of money in this fund.
Stablecoin would enter an already congested market dominated by the tastes of the USDT of Tether and the USDC of Circle. The report comes one day after World Liberty Financial (WLFI), a decentralized funding protocol supported by President Donald Trump, confirmed that he also planned to offer stablecoin.
Fidelity did not immediately respond to the request for comments from Coindesk.
