KeyInsights:
- Fidelity to launch stablecoin, expanding into the tokenized US Treasury market.
- Stablecoin market cap surpasses $233 billion, with USDT and USDC leading.
- Fidelity’s ETFs, including Bitcoin and Ethereum, attract significant investor inflows.
Fidelity Investments, a US-based asset manager, is set to launch a stablecoin, joining other American companies like Ripple in launching a digital asset product.
The asset manager already has a significant investment in cryptocurrency. It is in the advanced stage of testing its token, which the firm’s digital assets arm would manage. Fidelity’s pivot into stablecoins is part of a broader strategy to expand into the tokenized US Treasury Market.
According to Unionesarda, Brendan Blumer, CEO of EOS parent company Block One and Chairman of Bullish, recently purchased a luxury house in the Bay of Romazzino, Sardinia, Italy, for nearly 170 million euros, becoming the highest-value transaction in the region and in the history of Italian real estate, except for Villa Certosa.
According to the Financial Times, the investment company filed to launch a digital version of the US Money Market competing with Asset management rivals like Blackrock and Franklin Templeton. The Trump administration’s pro-crypto policies have spurred firms like Fidelity to increase their investments in the Crypto industry.
The State of the Stablecoin Market
Fidelity’s proposed stablecoin joins the ranks of other stablecoin products offered by payment companies competing for a larger market share. Stablecoins are an integral part of the crypto industry and are primarily perceived as one of the few crypto assets that have achieved a product market fit. Stablecoins account for approximately 7% to 8.3% of the total cryptocurrency market capitalization.
The stablecoin market cap has grown to over $233 billion since February 2025, suggesting that the asset class makes up roughly 8.3% of the total crypto market capitalization. USDT by Tether remains the largest stablecoin by market share, followed closely by Circle’s USDC.
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New entries like Ripples RLUSD and Paypal’s PYUSD are also making a dent in the market as the need for crypto assets with real utility increases. Stablecoins are crypto assets pegged to FIAT currency or another valuable commodity on a 1:1 ratio. Stablecoins are fast becoming a great store of value and a hedge against inflation in countries with weak local currencies.
Fidelity’s ETF Products
Aside from proposing the launch of a stablecoin, Fidelity Investments also owns one of the most considerable Exchange-Traded Funds in terms of inflows. Fidelity holds a Bitcoin and Ethereum ETF alongside asset managers like Blackrock and Bitwise.
FBTC is the fifth most popular exchange-traded fund (ETF), attracting approximately $6.9 billion in inflows. FBTC hit the $1 billion mark eight days after its launch, joining BlackRock’s IBIT in this milestone. This indicates a strong demand for the ETF product amongst institutional and retail investors.
Fidelity also owns an Ethereum ETF product: the Fidelity Ethereum Fund (FETH), a spot Ethereum Exchange-Traded Product (ETP) is designed to provide investors with direct exposure to Ethereum’s price movements.
