The post Fidelity to Introduce a New Stablecoin, Extends Its Digital Asset Reach appeared on BitcoinEthereumNews.com.

Key Takeaways: Fidelity is reportedly in the advanced stages of testing a USD-pegged stablecoin, further signaling the broader industry shift toward digital assets. The move comes amid increasing regulatory clarity from the U.S. and a growing push in traditional finance to adapt to blockchain technology. This move positions Fidelity as a competitor to established players such as Tether and Circle in the stablecoin market. Fidelity Investments, one of the world’s largest asset managers with approximately $5.8 trillion in assets under management, is reportedly preparing to enter the stablecoin market—and, by extension, the broader digital asset space. The Fidelity Stablecoin Will Navigate the Changing Landscape of Stablecoin Regulation Sources familiar with the matter state that Fidelity’s stablecoin is designed to function as ‘digital cash’ in cryptocurrency markets and will be issued through Fidelity Digital Assets, its crypto custody division. By leveraging its existing infrastructure in digital asset custody, Fidelity aims to provide a secure and regulated alternative to existing stablecoins. This positions the company to navigate tightening regulations around stablecoins — especially in the U.S. President Trump has signaled a focus on pro-crypto policies, particularly supporting “lawful and legitimate” dollar-pegged stablecoins. U.S. Treasury Secretary Scott Bessent reiterated that the government planned to utilize stablecoins to secure the position of the U.S. dollar as the globe’s reserve currency. He also announced plans to work with regulators on guidance that prevents growth in the digital asset market. This comes as Federal Reserve Governor Christopher Waller previously noted that the emergence of USD-denominated stablecoins dominating the DeFi space might also help cement the dollar’s role. He added that approximately 99% of stablecoin market cap is connected to the U.S. dollar. The shift in administration has influenced the narrative, although Fed Chair Jerome Powell once referred to stablecoins as “a form of money” and supported a…

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Filed under: News - @ March 27, 2025 6:24 pm