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Bitcoin The Almighty Buck

Fidelity Prepares To Unveil Its Own Stablecoin (binance.com) 32

Posted by BeauHD from the everybody's-doing-it dept.
According to the Financial Times, Fidelity Investments is in advanced stages of developing its own stablecoin. Binance reports: The Boston-based financial services giant plans for the token to serve as a form of digital cash, according to the report, which cites two people close to the matter. The token would form part of company's strategy to enter the tokenized government bonds market. Stablecoins are a cryptocurrency whose value is pegged to a real-world asset such as the U.S. dollar or gold. They provide a convenient way for crypto traders to preserve their fiat value without having to cash out of the market.

The news emerges just days after Fidelity filed paperwork to register a blockchain-based version of its U.S. dollar money market fund. The company seeks to register an "OnChain" share class of its Treasury Digital Fund (FYHXX), which holds cash and U.S. Treasury securities and is available only to Fidelity's hedge fund and institutional clients. A Fidelity stablecoin could fill the role of cash in this fund. The report comes a day after World Liberty Financial, a crypto venture backed by Donald Trump and his family, launched a U.S. dollar-pegged stablecoin called USD1.
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Fidelity Prepares To Unveil Its Own Stablecoin More

Fidelity Prepares To Unveil Its Own Stablecoin

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  • Can someone explain to me like I'm a small child what the point is of having a digital currency that's free of the shackles and conceits of government issued fiat currency...that's also pegged to government issued fiat currency and backed by cash reserves of said currency?

    • Re: (Score:3)

      by ceoyoyo ( 59147 )

      You're mixing up the crazies who want to keep money under their mattress but don't want to get dinged by inflation and the not so crazies that want to take a nice percentage of everybody's transactions.

      The latter like stable coins because they represent a real currency so they might actually get used as one, and if yours is popular you get to be VISA taking a cut of every transaction and also people give you lots of money to do what you want with and you don't even have to pay them interest. It's a great ra

      • So there's only two ways this ends up (Score:5, Insightful)

        by rsilvergun ( 571051 ) on Wednesday March 26, 2025 @10:49PM (#65261997)
        The first is a enormous money laundering instrument. Trillions of dollars just exiting the main economy.

        The second is unregulated banking with absolutely no safety protocols.

        Either way it'll create the kind of disaster that makes the Great depression look like the .com bubble.

        This is something that needs to be stopped right the fuck now but the zero chance of that happening. It's so freaking frustrating to watch everything collapse thing and being basically unable to do anything about it.

        • Re: (Score:2)

          by ceoyoyo ( 59147 )

          The first is a enormous money laundering instrument.

          The first is an anarchist pipe dream. It's super dangerous but fortunately it's also super impractical.

          Money laundering is firmly in the second camp. Money launderers love unregulated banking, particularly the kind that doesn't care about borders. Still dangerous if it gets big enough, but not as dangerous as overthrowing national currencies.

  • What few rules exist have almost nobody left to enforce them. May as well invent some money from thin air, as long as you aren't promoting equality you're free to pillage.
  • The question has been: "What is the point of stable coins?" I've never understood it, and it was asked here [slashdot.org] in another thread earlier today without a satisfactory answer. And finally, I see the light. The answer: "They provide a convenient way for crypto traders to preserve their fiat value without having to cash out of the market."

    In other words, stable coins function as "cash" (i.e.: money market funds) for crypto investors. A fund which is both very liquid and very safe, where you can store your money

    • Maybe, but, more importantly, stablecoins are the only part of the crypto world that isn't a giant tulipmania bubble. Imagine you develop a payment card with an ARM chip in it, or a phone app or whatever, that lets you transfer bitcoins to a merchant at a cash register. Cool tech, but useless, because what merchant in their right mind wants to take payment in fake money?

      Now imagine the same thing, but it's a stablecoin backed by $1 deposited in an escrow fund for every $1 token issued, and imagine the tra

    • Re: (Score:2)

      by coop247 ( 974899 )
      If properly backed dollar for dollar, that is the theoretical use.

      The problem is that stablecoins in practice go like this:
      CryptoBro: Hi Tether, I have $50,000
      Tether: Excellent, here's $1,000,000 Tethers!
      CryptoBro: [Buys $1,000,000 worth of bitcoin] Look how rich I am!
  • I won't invest in crypto unless it helps me launder money, buy hookers, import drugs and sex traffic.

    (for people who can't read between the lines, that was sarcasm. No need to call the cops)

    The point is, crypto serves two purposes.
    1) hiding transactions
    2) fostering gambling addictions

    • You forgot "buy politicians".

    • Re: (Score:2)

      by necro81 ( 917438 )
      You forgot "blackjack"
    • you forgot the big one, ransomware payments, which maybe is the hiding transactions. But cash is the ultimate in hiding transactions. The main reason the 500 dollar bill got binned. And after a quick google search I discover there once was even a 10K bill, and a 100K bill that never made it to circulation. And keep in mind that 10K bill came out in 1918. In today's money that is like 1M+ I imagine. High denomination bills were removed because they were used for laundering. So removing the high denomination
  • I mean just fuck. This is terrifying. We are literally talking about a money laundering and criminal instrument being directly integrated into our core financial system.

    If you don't understand why that's a bad thing I don't even know where to begin. The number of things you're wrong about it would take more time than I have left on this earth to disabuse you of.

    • Why not print money too for a strong basic income?

    • Re: (Score:1)

      by Anonymous Coward

      The President of the United fucking States did a rug-pull cryptocoin scam and no one batted an eye. Banks don't want to miss out on that apparently now-legal pie. What else do you expect?

    • Money laundering was already integrated into our financial system. Banks like HSBC have been involved in such laundering before. Cash is still the preferred medium for money laundering.

    • Half the US voted for a convicted felon who explicitly said, out loud, during their campaign, that they'd end democracy. I don't know what the word "criminal" is intended to mean any more.

      • Re: (Score:2)

        by linuxguy ( 98493 )

        Anything inconvenient for the powers be is "criminal" now. They kept harping on free speech before they came into power, but now want to hard shut down of anybody that is critical of them. We're slowly turning into Russia now. They have laws on the books that send you to prison for 13 years if you criticize the govt.

    • I think you're talking about cash and Fiat, because that's where most of the money laundering happens https://www.zippia.com/wp-cont... [zippia.com]
  • And now stablecoins? I’m not invested in fidelity now, and I probably never will. If I want to gamble, I’ll go to Las Vegas.
    • As a customer, not happy about the idea. It is customer cash though so I guess they had enough dumbass customers that they needed to do what the customer wants. I would expect the usual popup "Are you sure you want to buy, this is a high risk security" or whatever they do on those. I've gotten those on a couple stocks I've bought and they weren't even what I'd call risky stocks.
      • That’s like a pharmacy that starts selling vape pens and cannabis in order to “give the customer more choice”.

        It suits some people. But not me. I’ll take my money to a different venue.

  • Hi worried should I be about my regular investments, 401K and money that's in Fidelity. If this stable coin tanks, will it take my account down with it? I'm thinking about companies such as Barings or Bear Stearns.

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