Asset Manager Fidelity Plans to Launch Crypto Stablecoin

Asset management firm Fidelity Investments plans to launch its stablecoin, advancing its presence in the digital assets sector. The latest development aligns with the company’s expansion strategy into tokenized products.

According to a Financial Times report, the $5 trillion asset manager is in the final stage of testing its token. This token will act as a cash equivalent in the crypto market, reflecting the firm’s commitment to integrating blockchain technology into its offering. Additionally, the firm will manage the digital assets through its crypto-asset sector.

Fidelity, one of the leading asset managers, also revealed that it has filed to launch a digital type of the United States money market fund. The fund aims to compete with similar products from industry rivals like BlackRock, the world’s leading investment company, and Franklin Templeton.

Tokenized Assets as Collateral

Cynthia Lo Bessette, Head of digital asset management at Fidelity, noted that tokenization could play a major role in transforming the finance sector. She added that one use case to advance the efficiency and productivity of the capital markets was using tokenized assets as collateral to meet margin expectations in trading. 

Over the years, Fidelity has displayed a strong interest in digital assets, particularly the world’s largest crypto asset by market cap, bitcoin (BTC). With the stablecoin market cap currently valued at approximately $221.9 billion, it is clear that the firm wants a piece of the growing sector.

Earlier this year, the asset manager revealed in its “2025 look ahead” that BTC was at the point of widespread adoption to show its dedication to the crypto space. As such, the company reassured its investors that they could still enter the crypto market.

Stablecoin Expansion

While Fidelity plans to launch its token, the stablecoin market has grown rapidly with increasing competition. Tether (USDT) is the largest stablecoin, with an approximate $144 million market cap, followed by Circle (USDC), which has currently surpassed $60 billion and is expanding its presence.  

This competition to replace USDT and USDC has made CZ, the former CEO of crypto exchange giant Binance, believe the battle will strengthen the market. Meanwhile, Chris Kuiper, the director of Research at Fidelity, stated that 2025 marks a crossroads and anticipates the adoption of digital assets.

The post Asset Manager Fidelity Plans to Launch Crypto Stablecoin appeared first on Cointab.