Fidelity plans stablecoin launch after SOL ETF ‘regulatory litmus test’

4 days ago

Fidelity Investments is reportedly successful the last stages of investigating a US dollar-pegged stablecoin, signaling the firm’s latest propulsion into integer assets amid a much favorable crypto regulatory clime nether the Trump administration.

The $5.8 trillion plus manager plans to motorboat the stablecoin done its cryptocurrency division, Fidelity Digital Assets, according to a March 25 study by the Financial Times citing anonymous sources acquainted with the matter.

The stablecoin improvement is reportedly portion of the plus manager’s wider propulsion into crypto-based services. Fidelity is besides launching an Ethereum-based “OnChain” stock people for its US dollar wealth marketplace fund.

Fidelity’s March 21 filing with the US securities regulator stated the OnChain stock people would assistance way transactions of the Fidelity Treasury Digital Fund (FYHXX), an $80 cardinal money consisting astir wholly of US Treasury bills.

While the OnChain stock people filing is pending regulatory approval, it is expected to instrumentality effect connected May 30, Fidelity said.

Increasingly much US fiscal institutions are launching cryptocurrency-based offerings aft President Donald Trump’s election signaled a displacement successful policy.

Custodia and Vantage Bank person launched “America’s first-ever bank-issued stablecoin” connected the permissionless Ethereum blockchain, which volition enactment arsenic a “real dollar” and not a “synthetic” dollar, arsenic Federal Reserve Board Governor Christopher Waller called stablecoins successful a Feb. 12 speech.

Trump antecedently signaled that his medication intends to marque crypto argumentation a nationalist priority and the US a planetary hub for blockchain innovation.

Fidelity’s spot SOL exertion is “regulatory litmus test”

Fidelity’s stablecoin propulsion comes a time aft Cboe BZX Exchange, a US securities exchange, requested support to database a projected Fidelity exchange-traded money (ETF) holding Solana (SOL), according to March 25 filings.

The filing whitethorn supply insights astir the SEC’s regulatory cognition toward Solana ETFs, according to Lingling Jiang, spouse astatine DWF Labs crypto task superior firm.

“This filing is besides much than conscionable a merchandise connection — it’s a regulatory litmus test,” Jiang told Cointelegraph, adding:

“If approved, it would awesome a maturing posture from the SEC that recognizes functional differentiation crossed blockchains.”

“It would accelerate the improvement of compliant fiscal products tied to next-gen assets — and for marketplace makers, that means much instruments, much pairs, and ultimately, much velocity successful the system,” Jiang added.

Meanwhile, crypto manufacture participants are awaiting US stablecoin legislation, which whitethorn travel successful the adjacent 2 months.

The GENIUS Act, an acronym for Guiding and Establishing National Innovation for US Stablecoins, would found collateralization guidelines for stablecoin issuers portion requiring afloat compliance with Anti-Money Laundering laws.

A affirmative motion for the manufacture is that the stablecoin measure whitethorn beryllium connected the president’s table successful the adjacent 2 months, according to Bo Hines, the enforcement manager of the president’s Council of Advisers connected Digital Assets.