{"id":19125,"date":"2025-03-26T09:46:36","date_gmt":"2025-03-26T09:46:36","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=19125"},"modified":"2025-03-26T09:46:36","modified_gmt":"2025-03-26T09:46:36","slug":"fidelity-plans-stablecoin-launch-after-sol-etf-regulatory-litmus-test","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=19125","title":{"rendered":"Fidelity plans stablecoin launch after SOL ETF \u2018regulatory litmus test\u2019"},"content":{"rendered":"
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\"Fidelity<\/p>\n

Fidelity Investments is reportedly in the final stages of testing a US dollar-pegged stablecoin, signaling the firm\u2019s latest push into digital assets amid a more favorable crypto regulatory climate under the Trump administration.<\/p>\n

The $5.8 trillion asset manager plans to launch the stablecoin through its cryptocurrency division, Fidelity Digital Assets, according<\/a> to a March 25 report by the Financial Times citing anonymous sources familiar with the matter.<\/p>\n

The stablecoin development is reportedly part of the asset manager\u2019s wider push into crypto-based services. Fidelity is also launching an Ethereum-based \u201cOnChain\u201d share class for its US dollar money market fund.<\/p>\n

Fidelity\u2019s March 21 filing with the US securities regulator stated<\/a> the OnChain share class would help track transactions of the Fidelity Treasury Digital Fund (FYHXX), an $80 million fund consisting<\/a> almost entirely of US Treasury bills.<\/p>\n

While the OnChain share class filing is pending regulatory approval, it is expected to take effect on May 30, Fidelity said.<\/p>\n

\"Fidelity
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Fidelity\u2019s filing to register a tokenized version of the Fidelity Treasury Digital Fund. Source: <\/em>Securities and Exchange Commission<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

Increasingly more US financial institutions are launching cryptocurrency-based offerings after President Donald Trump\u2019s election<\/a> signaled a shift in policy.<\/p>\n

Custodia and Vantage Bank have launched \u201cAmerica\u2019s first-ever bank-issued stablecoin<\/a>\u201d on the permissionless Ethereum blockchain, which will act as a \u201creal dollar\u201d and not a \u201csynthetic\u201d dollar, as Federal Reserve Board Governor Christopher Waller called<\/a> stablecoins in a Feb. 12 speech.<\/p>\n

\"Fidelity
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Source: <\/em>Caitlin Long<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

Trump previously signaled that his administration intends to make crypto policy a national priority<\/a> and the US a global hub for blockchain innovation.<\/p>\n

Related: <\/strong><\/em>Trump turned crypto from \u2018oppressed industry\u2019 to \u2018centerpiece\u2019 of US strategy<\/strong><\/em><\/a><\/p>\n

Fidelity\u2019s spot SOL application is \u201cregulatory litmus test\u201d<\/h2>\n

Fidelity\u2019s stablecoin push comes a day after Cboe BZX Exchange, a US securities exchange, requested permission to list a proposed Fidelity exchange-traded fund (ETF) holding Solana (SOL)<\/a>, according to March 25 filings.\u00a0<\/p>\n

The filing may provide insights about the SEC\u2019s regulatory attitude toward Solana ETFs, according to Lingling Jiang, partner at DWF Labs crypto venture capital firm.<\/p>\n

\u201cThis filing is also more than just a product proposal \u2014 it\u2019s a regulatory litmus test,\u201d Jiang told Cointelegraph, adding:<\/p>\n

\u201cIf approved, it would signal a maturing posture from the SEC that recognizes functional differentiation across blockchains.\u201d<\/p><\/blockquote>\n

\u201cIt would accelerate the development of compliant financial products tied to next-gen assets \u2014 and for market makers, that means more instruments, more pairs, and ultimately, more velocity in the system,\u201d Jiang added.\u00a0<\/p>\n

Related: <\/strong><\/em>SEC dropping XRP case was \u2018priced in\u2019 since Trump\u2019s election: Analysts<\/strong><\/em><\/a><\/p>\n

Meanwhile, crypto industry participants are awaiting US stablecoin <\/a>legislation, which may come in the next two months.<\/p>\n

The GENIUS Act, an acronym for Guiding and Establishing National Innovation for US Stablecoins, would establish collateralization guidelines for stablecoin issuers while requiring full compliance with Anti-Money Laundering laws.<\/p>\n

A positive sign for the industry is that the stablecoin bill may be on the president\u2019s desk in the next two months, according to Bo Hines, the executive director of the president\u2019s Council of Advisers on Digital Assets.<\/p>\n