Stablecoin is emerging as a hot trend in the cryptocurrency field with a market capital of up to 235 billion USD. Even the Trump family is getting involved with their own cryptocurrency. Fidelity Investments, one of the big names in traditional finance, is also not staying out of the game. The company is testing its own stablecoin to enter the rapidly developing digital asset market. The digital asset team of Fidelity is leading, with plans to create a Token that operates like cash in the cryptocurrency market.
Fidelity's move is not a small experiment but part of a larger plan to penetrate deeper into the tokenized financial field. With Trump pushing cryptocurrencies into the public light, the timing could not be more favorable. Fidelity's latest stablecoin initiative is part of their growing interest in digital assets. The Boston-based company has also filed to launch a US digital money market fund, expected to debut by the end of May. This fund will directly compete with large institutions like BlackRock and Franklin Templeton.
Fidelity is still in the early testing stage of its stablecoin, but there are indications that an official launch may happen soon. If successful, this would place Fidelity on par with other financial giants entering the stablecoin market, including Ripple's RLUSD and Tether's USDT. Trump's influence on stablecoin development is also undeniable. The political landscape has played a crucial role in the recent increase of interest in stablecoin.
US Treasury Secretary Scott Bessant recently emphasized the government's strategy to use stablecoin to maintain the USD's position as the world's reserve currency. However, despite this push, critics warn that stablecoins come with risks. Some believe they could cause financial instability or become tools for fraudulent activities, raising concerns about regulatory oversight.
Alongside stablecoins, fund managers and cryptocurrency companies like Ondo Finance and Hashnote—both backed by stablecoin issuer Circle—are actively exploring tokenized money market funds. These digital assets operate like interest-adjusted instruments and can potentially serve as collateral for transactions. Although these tokenized funds have attracted over 5 billion USD, skeptics argue that they lack the deep liquidity and usability of traditional stablecoins. However, Fidelity's move into this space signals growing interest from institutions, marking a new phase in digital finance development.
