Fidelity Investments, one of the largest asset management companies in the U.S., is in the final stages of testing its own dollar-backed stablecoin. 

This move highlights the growing interest of traditional financial institutions in the cryptocurrency market, particularly amid a more favorable regulatory climate in the U.S.

According to the Financial Times, Fidelity Digital Assets is completing preparations for the launch, expected by the end of May. Simultaneously, the company has filed an application with the SEC to launch a treasury digital fund featuring Ethereum-based OnChain shares.

Fidelity’s entry into the stablecoin market underscores a broader trend of institutional blockchain adoption. In 2023, PayPal made a similar move with its PYUSD stablecoin.

 However, the recent surge in activity is also tied to political shifts: following Donald Trump’s election victory, financial institutions have accelerated their development of crypto-based products.

For instance, Custodia and Vantage Bank this week announced the first U.S. bank-issued stablecoin, built on the Ethereum blockchain.

Meanwhile, the Trump-backed DeFi project World Liberty Financial (WLFI) has introduced USD1—a stablecoin backed by U.S. 

Treasury bills, dollar deposits, and cash equivalents. The token is already available on Ethereum and Binance, with plans to expand to other blockchains. 

Each USD1 is pegged at a 1:1 ratio with the U.S. dollar and undergoes regular third-party audits to verify its reserves.

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