The asset management titan Fidelity Investments reportedly plans to roll out its own dollar-backed stablecoin.

Citing two people familiar with the matter, the Financial Times reports that the Boston-based firm with $5 trillion in assets under management (AUM) is now in the advanced stages of testing the crypto asset.

Fidelity's digital assets arm will manage the stablecoin, which is designed to function as cash in cryptocurrency markets.

The report says the company is launching the stablecoin as part of its expansion into the nascent market for tokenized versions of US Treasury bonds. Last week, the asset manager also submitted a filing to the U.S. Securities and Exchange Commission (SEC) to register a blockchain-based version of the Fidelity Treasury Digital Fund.

The development comes amid Donald Trump's support for dollar-backed stablecoins. The president has pledged to promote stablecoin growth to strengthen the dominance of the US dollar and urged Congress to pass legislation establishing regulatory clarity for the assets.

Lawmakers are working to pass the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, which restricts what types of investments the assets can use for collateral.

Senator Bill Hagerty (R-TN), who sponsored the bill, says that a regulatory framework for stablecoins can help boost demand for the US Treasury.