The $5.8 trillion asset manager Fidelity Investments has filed paperwork with the U.S. Securities and Exchange Commission to register a blockchain-based share class of its Fidelity Treasury Digital Fund (FYHXX).

Tether, the company behind the world’s largest stablecoin, says it’s working with a Big Four accounting firm to complete a long-promised audit of its reserves.

Germany’s financial watchdog has ordered crypto protocol Ethena to stop issuing its synthetic dollar token USDe, citing major compliance failures under the EU’s crypto regulatory framework.

Top stories in the Crypto Roundup today:

• Fidelity Files to Launch Tokenized U.S. Treasury Fund on Ethereum Blockchain
• Tether Pursues Big Four Audit Amid Changing U.S. Political Landscape
• German Regulator Orders Halt of Ethena’s USDe Stablecoin Issuance

Fidelity Files to Launch Tokenized U.S. Treasury Fund on Ethereum Blockchain

The $5.8 trillion asset manager Fidelity Investments has filed paperwork with the U.S. Securities and Exchange Commission to register a blockchain-based share class of its Fidelity Treasury Digital Fund (FYHXX).

The proposed "OnChain" version of the fund, which holds cash and U.S. Treasury bills, is designed to operate on Ethereum and may expand to other blockchains. If approved, it’s expected to go live by May 30.

The move puts Fidelity in competition with other financial heavyweights like BlackRock and Franklin Templeton, who have launched similar tokenized money market funds. These products aim to increase efficiency and lower costs by using public blockchains to record ownership and manage transfers.

The tokenized Treasury sector has ballooned from less than $1 billion to $4.8 billion in the past year, according to data from rwa.xyz. BlackRock’s BUIDL fund, issued via Securitize, leads the pack with $1.5 billion in assets. 

Tether Pursues Big Four Audit Amid Changing U.S. Political Landscape

Tether, the company behind the world’s largest stablecoin, says it’s working with a Big Four accounting firm to complete a long-promised audit of its reserves.

While Tether has published quarterly attestations, it has yet to produce a full audit, something critics have long called for to verify its claims of full reserve backing. The company has issued more than $140 billion of its USDT stablecoin.

“It’s our top priority,” Ardoino said. “Now we are living in a landscape where it’s actually feasible.”Ardoino didn’t name the auditing firm but said that Donald Trump’s pro-crypto stance could help clear regulatory roadblocks.

Earlier this month, Tether named Simon McWilliams as CFO to guide the company toward its full audit goal. A completed audit could lend greater legitimacy to USDT, which is widely used across crypto markets to move funds and settle trades.

German Regulator Orders Halt of Ethena’s USDe Stablecoin Issuance

Germany’s financial watchdog has ordered crypto protocol Ethena to stop issuing its synthetic dollar token USDe, citing major compliance failures under the EU’s crypto regulatory framework.

The regulator, BaFin, said it uncovered "serious deficiencies" in Ethena GmbH’s operations, particularly in how it handles “asset reserves and compliance with capital requirements.” These shortcomings violate the Markets in Crypto-Assets Regulation (MiCA), which has governed stablecoin issuers in the European Union since June 30, 2024, BaFin said.

Ethena markets USDe as a synthetic dollar, backed by a mix of crypto assets like bitcoin and ether, along with offsetting short positions in futures markets. The goal is to maintain a $1 price peg while generating yield for users who stake the token.

"BaFin also has reasonable grounds to suspect that Ethena GmbH is publicly offering securities in Germany in the form of 'sUSDe' tokens of Ethena OpCo. Ltd. without the required securities prospectus,” the regulator added.

Ethena acknowledged the decision in a post on X, saying it will “continue to evaluate alternative frameworks.”

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