Stay in the loop with our weekly crypto digest as we get you up to speed on the hottest trends and events in the crypto space.
Here’s what happened in crypto this week:
Fidelity To Launch Its Own Tokenized Fund To Compete With BlackRock
Fidelity Investments has filed to register a tokenized version of its US dollar money market fund on the Ethereum network.
According to its March 21st filing with the US Securities and Exchange Commission (SEC), its new blockchain initiative, named “OnChain,” will enable tracking transactions of the Fidelity Treasury Digital Fund (FYHXX), an $80 million fund primarily invested in US Treasury bills.
If approved, OnChain will take effect on May 30th. The OnChain share class provides investors with enhanced transparency and verifiable tracking of share transactions.
This move aligns Fidelity with other major asset managers like BlackRock and Franklin Templeton, who have also ventured into blockchain tokenization.
Fidelity To Launch Its Own Crypto Stablecoin
$6 trillion asset manager Fidelity Investments is preparing to deepen its involvement in the crypto market by launching its own stablecoin. This move comes as the US government, under President Donald Trump, accelerates regulatory reforms in the crypto industry.
According to the Financial Times, Fidelity has already reached an advanced testing phase for its stablecoin. The company aims to use it as a form of “cash” for transactions in the crypto market. This strategy signals direct competition with leading stablecoins like USDT and USDC, which currently dominate market liquidity.
Tether Plans To Get Audited By ‘Big Four’ Accounting Firms Following New CFO Hire
Tether CEO Paolo Ardoino says the company wants to secure a full audit of its USDT reserves from one of the “Big Four” accounting firms: KPMG, Deloitte, EY, or PwC.
No specific firm has been named yet, but Ardoino believes Tether’s chances of obtaining a high-profile audit have improved since President Donald Trump signed an executive order establishing a strategic crypto reserve.
This also comes as the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) of 2025 Act takes place in the US. This is a proposal that would mandate stablecoin issuers be audited and hold reserves in conservative assets like Treasury bonds.
US SEC Says Non-Fungible Tokens (NFTs) May Not Be Securities
The US Securities and Exchange Commission (SEC) may expand discussions to exclude non-fungible tokens (NFTs) from securities regulation. Following recent statements that Bitcoin mining and meme coins are ‘non-securities,’ there is speculation that NFTs could receive similar exemptions.
According to Sander Lutz, who is the Senior Writer of Decrypt, Commissioner Hester Peirce specifically mentioned that projects like ‘Stoner Cats’ or ‘Flyfish Club’ could be considered for exclusion from securities regulation. These projects raised funds for animation production and membership restaurant construction by selling NFTs and are structured to allow secondary market trading with a certain fee returning to the creators.
In the past, the SEC, during the tenure of former Chairman Gary Gensler, had filed lawsuits against these projects for violating securities laws.
Trump Media And Crypto.com Forms Partnership To Launch Crypto ETFs
Trump Media and Technology Group Corp. (TMTG) has signed a non-binding agreement to partner with Crypto.com to launch a series of exchange-traded funds (ETFs) and exchange-traded products through the Truth.Fi brand.
The ETFs, made available through Crypto.com’s broker-dealer Foris Capital US LLC, are expected to comprise digital assets and securities with a Made in America focus spanning diverse energy-related industries.
Crypto.com will support the backend technology, provide custody, and supply the cryptocurrencies for the ETFs, which are anticipated to include a unique ETF basket of cryptocurrencies incorporating Bitcoin, Cronos, and other crypto assets.
Planned to launch later this year, subject to a definitive agreement and regulatory approval, the funds are expected to be widely available internationally, including in the United States, Europe, and Asia, across existing platforms and brokerages.
BlackRock Debuts Bitcoin Exchange-Traded Product In Europe
BlackRock has announced its widely anticipated entry into Europe’s cryptocurrency exchange-traded product (ETP) market with a physically backed Bitcoin strategy. The iShares Bitcoin ETP (IB1T) debuts with a total expense ratio (TER) of 0.15%, but this will rise to 0.25% at year-end when the temporary fee waiver ends.
Domiciled in Switzerland and backed by Bitcoin, which is held in cold storage through Coinbase, IB1T has begun trading on Deutsche Boerse, Euronext Paris, and Euronext Amsterdam.
The ticker mirrors that of the firm’s US-listed Bitcoin ETF – the iShares Bitcoin Trust ETF (IBIT) – which, at $50.7bn in assets under management (AUM), is around three times the size of the second largest US spot Bitcoin ETF.
Senator Elizabeth Warren Presses SEC Nominee Paul Atkins Over FTX Ties
Senator Elizabeth Warren has raised concerns about US Securities and Exchange Commission (SEC) chair nominee Paul Atkins, citing his advisory role with FTX and pro-deregulation stance.
In a letter, Warren questioned Atkins’ involvement with the failed exchange and potential conflicts of interest. She also criticized his past SEC decisions, urging transparency ahead of his confirmation hearing.
Notably, Warren issued a similar letter to the White House crypto Czar David Sacks earlier this month, raising concerns over whether his advisory role has benefited him financially.
World Liberty Financial To Launch USD1 Stablecoin
World Liberty Financial, a crypto project backed by President Donald Trump’s family, announced plans for a stablecoin pinned to the US dollar just days after the president called on Congress to pass “commonsense” legislation to regulate stablecoins.
USD1 is an institution-grade stablecoin fully backed by US Treasuries and cash equivalents. Designed for institutional use, USD1 will launch on Ethereum and Binance Smart Chain, with BitGo providing custody services.
The company warns against scams and urges users to await official updates on availability. The stablecoin aims to merge DeFi benefits with traditional financial safeguards.
Ripple Will Pay Only $50 Million To US SEC Over XRP Lawsuit
The cryptocurrency company’s chief legal officer said that Ripple Labs agreed to settle the lawsuit with the US Securities and Exchange Commission (SEC) over the alleged sale of unregistered securities and pay just $50 million of a previously imposed $125 million fine.
However, these agreements remain subject to a vote by the Commission. Final documentation and other standard court procedures also need to be completed. Once finalized, the Ripple versus SEC case, which began in December 2020, will officially conclude.
Elon Musk’s AI Chatbot Grok Launches On Telegram
The AI application Grok, developed by Elon Musk’s artificial intelligence company xAI, has officially landed on Telegram, allowing it to access a messaging platform with over 1 billion monthly active users.
Telegram Premium users will not need to pay extra fees, and analysts believe that Grok’s introduction to Telegram may give it an advantage in the competition with WhatsApp and Signal.
Grok’s integration highlights the growing competition in AI chatbots, enhancing user interaction across messaging platforms.
Final Thoughts
So that’s it for this week!
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Have a fantastic week ahead!
