Fidelity Tests a Stablecoin as It Builds Out Crypto Offering — WSJ

By Vicky Ge HuangFidelity Investments is testing a stablecoin, while legislation covering dollar-backed cryptocurrencies makes progress in Congress.The Boston-based company was among the first big U.S. asset managers to offer exchange-traded funds that hold bitcoin and ether directly, and is moving into blockchain-based money-market funds.Fidelity's digital-assets team regularly tests new ways to meet customers' "evolving needs," said a company spokeswoman. She said Fidelity doesn't have immediate plans to launch a stablecoin.This month, President Trump told a White House crypto summit that he hoped lawmakers send stablecoin legislation to his desk before Congress's August recess. Bo Hines, the executive director of the President's Council of Advisers on Digital Assets, said at a recent conference that stablecoin legislation could be finalized in the next two months.World Liberty Financial, the Trump family-backed crypto venture, on Tuesday unveiled plans to launch a stablecoin. Some analysts say the move could potentially derail efforts to pass the stablecoin bill.Fidelity recently filed paperwork with the Securities and Exchange Commission to launch a money-market fund on the Ethereum blockchain. Rival BlackRock's tokenized money-market fund, launched a year ago, now has nearly $2 billion in assets.This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).