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Market Pulse: Fidelity's launching a stablecoin-here's why it could be huge…

Published: Apr 2, 2025
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Hold onto your wallets - Fidelity's dropping a stablecoin on Ethereum, and it's backed by the U.S. Treasury. Here is everything you need to know…

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Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.


What happened?

Fidelity Investments, a major financial services firm managing trillions in assets, is preparing to launch its own stablecoin on Ethereum. The stablecoin is to be backed by U.S. Treasury bonds or dollar reserves, following a model similar to leading stablecoins like Tether (USDT) and Circle's USDC. This development comes as part of Fidelity's broader strategy to integrate digital assets into its offerings, including a tokenised version of its U.S. dollar money market fund, which it recently filed to register on the Ethereum.

Cryptonary's take

Crypto adoption is accelerating, and institutions are more bullish than ever. Sure, markets are jittery in the Trump administration's early days, but when it comes to fostering innovation, there's never been a better time for crypto. Stablecoins are proving to be a killer use case, and their adoption is skyrocketing. Fidelity's entry signals the next wave of the stablecoin boom. Big players are making big plays.

There are 3 ways to play this:

  • Bet on chains stablecoins are issued on (Ethereum's the king for now)
  • Stablecoin issuers (think Circle or even Fidelity down the line).
  • DeFi protocols' stablecoins are used the most (Aave, Curve, you name it)
The boom's already underway, and we're working on a deep dive to unpack this specific chain, issuers, protocols, and how to position yourself to cash in. Free subs get a taste, pros get the full playbook. Stay tuned- our report drops soon! Now let's move to what is happening with FDUSD


FDUSD: Depegged & Under Fire FDUSD, issued by First Digital Labs and custodied by First Digital Trust (FDT), dropped to ~$0.91 (currently at $0.97 at the time of writing) after Justin Sun claimed FDT is insolvent and urged users to “secure their assets.” The panic sell-off erased $130M+ in market cap. Binance, holding over 90% of FDUSD supply, now faces pressure. It’s offering 1:1 redemptions, but with 1.67B tokens in circulation, confidence is fragile.

TUSD: $456M Reserve Gap TUSD, managed by Techteryx (also tied to FDT), is just holding its peg (~$0.998) after court filings revealed a $456M shortfall, allegedly funneled into illiquid loans via Aria Commodities. Sun stepped in again, quarantining 400M TUSD and injecting liquidity but this is a band-aid. Long-term trust remains shaky.

Sun vs. FDT: Legal Showdown Looms FDT has denied all allegations, accusing Sun of a “smear campaign” and promising legal action. Meanwhile, Sun continues to shape the narrative—and the market. Binance’s Risk FDUSD is Binance’s core stablecoin post-BUSD. If both FDUSD and TUSD spiral, Binance’s stablecoin strategy could take a major hit.

User Advisory: Exit Immediately If you hold FDUSD or TUSD, we strongly recommend rotating into USDC or USDT. These stablecoins face serious redemption and reserve risks. Don’t wait for a freeze—exit while liquidity is available.

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