Fidelity's Ethereum Stablecoin Launch Could Cost Banks $500 Billion

Fidelity's new stablecoin on Ethereum might lead to a $500 billion loss for banks, showcasing the growing trend of digital currencies.

Fidelity has officially introduced a stablecoin on the Ethereum mainnet, strategically positioning it as a compliance-focused settlement dollar. This innovative token will be distributed via the company's brokerage, custody, and wealth management services. The launch occurs amidst a rapidly expanding landscape of stablecoins, with projections indicating that 59 significant new stablecoins were released in 2025, according to the third-party analytics platform Stablewatch.

This move by Fidelity signifies a pivotal moment in the evolving cryptocurrency sector, presenting both opportunities and challenges for traditional financial institutions. Analysts predict that banks could potentially face losses amounting to $500 billion as digital currencies gain traction and reshape the financial landscape.