Fidelity Investments is in advanced stages to develop its own Stablecoin, Financial Times reported Wednesday.
The Boston -based financial services giant plans for the Token to serve as a digital cash form, according to the report, which cites two people close to the matter.
The Token would be part of the company’s strategy to enter the market for tokenized government bonds. Stablecoins is a cryptocurrency whose value is set to a real world asset such as the US dollar or gold. They provide a convenient way for encryption merchants to preserve their fiduciary value without having to collect outside the market.
The news arises only a few days after Fidelity presented paperwork to register a blockchain based version of its Pontal Market Fund in US dollars.
The company seeks to register a class of “Onchain” actions of its Treasury Digital Fund (FYHXX), which has cash and Values of the US Treasury. And is available only for the Fidelity Coverage Fund and institutional clients. A Fidelity Stablecoin could play the role of cash at this bottom.
The stablecoin would enter a busy market dominated by people such as the USDT of Tether and the USDC of Circle. The report occurs a day after World Liberty Financial (WLFI), a decentralized finance protocol backed by President Donald Trump, confirmed that he also has plans to offer a stable.
Fidelity did not immediately respond to Coendesk’s request to make more comments.
