Fidelity Develops Own Stablecoin While Expanding Crypto ETF Offerings
Fidelity Investments has developed its own stablecoin aimed at functioning as cash in crypto markets. Key points include:
- Fidelity's digital assets division will manage the stablecoin.
- The firm has been active in digital assets and blockchain for over a decade.
- Fidelity plans to launch a digital version of a US money market fund by the end of May.
Competition and the Broader Stablecoin Market
- Stablecoin market leaders include Tether (USDT) and USD Coin (USDC), with a combined market cap over $230 billion.
- World Liberty Financial is launching its own stablecoin backed by US Treasuries.
- Regulatory discussions on stablecoin issuance are intensifying in Washington.
- Supporters argue stablecoins enhance dollar dominance; critics cite financial stability risks.
Fidelity’s Dominance in Crypto ETFs
- On March 24, Fidelity’s Bitcoin ETF, Wise Origin Bitcoin Fund (FBTC), saw an inflow of $82.85 million, the highest among Bitcoin ETFs that day.
- Fidelity has applied for the first US spot Solana ETF with the Cboe BZX Exchange.
- Regulatory changes may improve the chances of altcoin ETF approvals.