One of the largest financial institutions in the US, Fidelity Investments is about to launch its own stablecoin. Cryptocurrency that is backed by the U.S. dollar value is called a stablecoin and more stable as compared to Bitcoin. Currently, Fidelity is testing the stablecoin and plans to launch it by the end of May.
It is also developing a digital version of a U.S. money market fund, for the company that oversees more than $5 trillion in assets. Its move will squarely pit it against the big financial powers such as BlackRock and Franklin Templeton. Fidelity’s new stable coin is a part of a larger initiative to bring blockchain to regular use in the area of finance.
The U.S. government is becoming more open to cryptocurrencies and so this launch is no coincidence. Fidelity can expand into the crypto world, as the stablecoins were supported by former President Donald Trump, who is running for re-election. Meanwhile, lawmakers in Washington are currently deciding on new rules for stablecoins which will likely be finalized soon.
That is why Fidelity believes blockchain based financial products like stablecoins could change the way money moves in the future. Custodia Bank and World Liberty Financial are not the only companies dabbling in the world of stablecoin. The new launch makes Fidelity one of the leaders in the growing industry of digital finance.
If Fidelity’s stablecoin is successful, it would speed up and reduce the cost of crypto transactions, as well as improve trust in the crypto world.
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