Investing.com -- Fidelity Investments is currently testing a stablecoin, as reported by a company spokesperson. Stablecoins, a form of cryptocurrency designed to maintain a constant value, typically a 1:1 dollar peg, have seen a surge in usage in recent years. However, Fidelity has no immediate plans to launch the stablecoin.

The Financial Times was the first to report on Fidelity’s plans, stating that the company was in advanced stages of testing the token. The global stablecoin market currently holds around $239 billion, with data provided by CoinGecko. The largest issuer of stablecoins is the El Salvador-based Tether , which has created over $140 billion worth of its token. This venture has proven profitable for Tether as it earns interest on the reserves held to back the coin.

The crypto industry has been gaining traction among mainstream financial institutions, especially following U.S. President Donald Trump’s support. Trump’s crypto venture, World Liberty Financial, announced on Tuesday its plans to launch a dollar-pegged stablecoin, backed by U.S. Treasuries, dollars, and other cash equivalents.

U.S. asset managers have also ventured into the crypto industry in the past. For instance, they have launched exchange-traded funds to track the bitcoin price after receiving approval from U.S. regulators in January 2024.

Fidelity Investments has also shown interest in the crypto industry in the past. On March 21, a separate digital asset business within the company filed to launch a tokenized money market fund. In this fund, the shares of buyers would be recorded on blockchain as well as via standard electronic records.

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