Fidelity Nears Launch of Dollar-Pegged Stablecoin Amid Pro-Crypto Shift in U.S. Policy

Fidelity Investments is reportedly close to launching a U.S. dollar-pegged stablecoin, marking another significant step in its ongoing expansion into digital assets.

The move comes as the regulatory environment in the United States turns increasingly favorable toward crypto under the Trump administration.

According to a March 25 report by the Financial Times, the $5.8 trillion asset manager is in the final stages of testing the stablecoin through its crypto division, Fidelity Digital Assets.

Fidelity Unveils Ethereum-Based OnChain Share Class for Money Market Fund

Fidelity is also introducing an Ethereum-powered “OnChain” share class for its U.S. dollar money market fund.

In a filing dated March 21, the firm told the U.S. Securities and Exchange Commission that the OnChain share class would track transactions of the Fidelity Treasury Digital Fund (FYHXX), an $80 million fund primarily invested in U.S. Treasury bills.

The company expects regulatory approval by May 30.

🇺🇸 Fidelity, a $6 trillion asset manager, to launch a crypto stablecoin. 👀 pic.twitter.com/T72tBDhco1

— Crypto Crib (@Crypto_Crib_) March 26, 2025

The firm’s latest initiatives arrive amid a wave of crypto-friendly moves from U.S. institutions following President Donald Trump’s re-election, which signaled a shift in federal crypto policy.

Recently, Custodia Bank and Vantage Bank launched what they claim to be the first U.S. bank-issued stablecoin on Ethereum, underscoring a growing trend of blockchain adoption in traditional finance.

Meanwhile, Fidelity’s interest in digital assets appears to be broadening.

On March 25, the Cboe BZX Exchange filed a request with the SEC to list a proposed Fidelity exchange-traded fund (ETF) based on Solana.

Experts say this filing could serve as a test case for how the SEC views ETFs tied to altcoins like Solana.

“This filing is more than a product proposal — it’s a regulatory litmus test,” said Lingling Jiang, a partner at DWF Labs.

If approved, she added, it would indicate a more mature regulatory stance and open the door to more compliant financial products involving blockchain-based assets.

In parallel, the crypto industry is watching closely for the passage of U.S. stablecoin legislation.

The proposed GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins) aims to implement strict collateralization rules and AML compliance.

Custodia and Vantage Bank Launch America’s First Bank-Issued Stablecoin

In a related development, Custodia Bank and Vantage Bank have announced the launch of what they describe as the first-ever U.S. bank-issued stablecoin deployed on a permissionless blockchain.

On March 25, Custodia revealed that it had tokenized U.S. dollar demand deposits and issued the stablecoin “Avit” on Ethereum using the widely adopted ERC-20 token standard.

As reported, the number of active stablecoin wallets has surged by over 50% in the past year, reflecting growing adoption and engagement within the digital asset ecosystem.

More specifically, active stablecoin addresses increased from 19.6 million in February 2024 to 30 million in February 2025, marking a 53% year-on-year growth.

Growing institutional adoption, expanding use in payments, and rising integration in decentralized finance (DeFi) has played a key role in the increase in active stablecoin wallets.

These factors have made stablecoins a fundamental component of the digital economy, offering liquidity, stability, and accessibility to users worldwide.