Fidelity Investments is preparing to launch its own stablecoin to strengthen its position in the digital asset market, according to Financial Times, citing sources.

Insiders report that the stablecoin is in its final testing phase and will serve as a digital cash equivalent for crypto transactions. The project will be managed by Fidelity Digital Assets.

This initiative is part of Fidelity’s expansion into the real-world asset (RWA) tokenization segment. Recently, the company filed documents to register a digital version of its U.S. money market fund—Fidelity Treasury Digital Fund (FYHXX).

The launch comes amid regulatory changes in the U.S. cryptocurrency sector. The administration of Donald Trump supports legal U.S. dollar stablecoins and aims to finalize regulatory frameworks by August.

Stablecoins like Tether often spark debates due to potential financial system risks. However, tokenized money market funds, like those Fidelity is pursuing, are considered more regulated and secure. According to RWA.xyz, the tokenized asset market has surpassed $19 billion.

Fidelity believes tokenization has the potential to revolutionize the financial industry, particularly in margin trading, where tokens can be used as collateral.

Additionally, on March 25, the Chicago Board Options Exchange (CBOE) filed a 19b-4 form with the SEC for a spot Solana ETF proposed by Fidelity.

On March 20, the company registered the Fidelity Solana Fund in Delaware.

Earlier in March, the RWA restaking protocol Zoth was hacked for $8.4 million.

Last month, Solana futures ETFs from Volatility Shares were listed by DTCC, becoming the first Solana-based financial instruments.