Expanding into Tokenized Assets

According to the Financial Times, Fidelity’s stablecoin initiative aligns with its broader strategy to expand into the emerging market for tokenized U.S. Treasuries.

Last week, the firm filed to launch a digital version of a U.S. money market fund by the end of May, positioning itself in direct competition with major asset managers such as BlackRock and Franklin Templeton.

Political and Industry Developments

The move comes as crypto-friendly President Donald Trump has expressed support for regulated, dollar-backed stablecoins, aiming to bolster the U.S. currency. He has urged lawmakers to finalize supporting legislation by August.

Meanwhile, World Liberty Financial—a crypto project backed by Trump and his sons—has also announced plans to introduce its own stablecoin, backed by short-term U.S. Treasuries and other cash equivalents.