Fidelity Investments is reportedly running a low-profile pilot of its own stablecoin, signaling a bold move toward deeper involvement in the digital asset economy. With more than $5 trillion in assets under management, Fidelity’s entrance into the stablecoin market could mark a significant shift in how institutional players embrace blockchain-based finance.
According to sources familiar with the matter, the fund giant is in the advanced stages of testing a digital token intended to act like cash within crypto markets. This stablecoin, still unnamed and undisclosed to the public, is being developed by Fidelity Digital Assets, the company’s crypto-focused division. While many details are still under wraps, the quiet nature of the pilot suggests a cautious but strategic approach.
It’s not yet clear whether Fidelity plans to release the stablecoin to the public or keep it reserved for institutional use. If it becomes available broadly, it would directly compete with market leaders like Tether and Circle, whose USDT and USDC tokens dominate the current stablecoin landscape. But even if limited to institutional clients, the move could still significantly influence how large investors interact with tokenized markets.
The timing is notable. Just days before news of the stablecoin pilot surfaced, Fidelity filed a proposal with the U.S. Securities and Exchange Commission to launch an “OnChain” share class for its Fidelity Treasury Money Market Fund. This share class would represent ownership of fund shares on the Ethereum blockchain, allowing real-world financial products to operate on decentralized infrastructure.
If approved, this tokenized version of the fund—called the Fidelity Treasury Digital Fund—will give institutional investors the ability to hold and transfer fund shares on-chain, with all the benefits of blockchain such as real-time settlement, transparency, and increased liquidity. The company has set a tentative launch date for May 30, 2025.
Fidelity’s moves reflect a broader trend in traditional finance: the push to tokenize real-world assets. Asset tokenization involves converting ownership rights of physical or traditional financial instruments into digital tokens on a blockchain. It’s a growing market, and according to data from rwa.xyz, tokenized U.S. Treasury debt now accounts for $4.8 billion in value—second only to private credit among tokenized real-world asset classes.
Other major players like BlackRock and Franklin Templeton have already entered the space. BlackRock’s BUIDL tokenized fund and Franklin’s Benji Investments platform are both early examples of traditional asset managers leveraging blockchain to create more efficient financial instruments.
While these developments are mostly geared toward institutional investors, the underlying infrastructure being built may pave the way for broader public access to tokenized assets in the future. Stablecoins, in particular, are seen as a key bridge between the traditional and decentralized financial worlds. Their ability to maintain a steady value while transacting on blockchain rails makes them ideal for payments, settlements, and on-chain liquidity.
Regulatory clarity is also improving. The U.S. government, under the current administration, has shown increasing support for regulated stablecoins. President Trump has called for fostering the growth of dollar-backed stablecoins, recognizing them as a tool to support the strength of the U.S. dollar in global markets. This is a notable pivot from previous skepticism and could create fertile ground for institutions like Fidelity to innovate with fewer legal uncertainties.
Fidelity’s stablecoin pilot and its push to tokenize money market funds show how seriously the company is taking the blockchain future. While the firm has long been bullish on crypto—offering Bitcoin custody and investment services since 2018—these latest moves suggest a deeper commitment to building infrastructure that integrates traditional finance with decentralized networks.
If Fidelity follows through with a public launch of its stablecoin, it would not only shake up the current stablecoin rankings but also lend significant credibility to the concept of institutional-grade digital cash. On the other hand, even a limited, institutional-only stablecoin could help streamline settlement, collateralization, and liquidity within Fidelity’s internal ecosystem and broader client base.
In a rapidly evolving landscape, Fidelity is positioning itself not just as a participant, but as a potential leader in the next generation of financial infrastructure. Whether it’s through a stablecoin, tokenized funds, or further blockchain initiatives, Fidelity’s moves are a strong signal that tokenization is no longer a fringe idea—it’s fast becoming the foundation of modern finance.
