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.

“This legislation is a critical first step in establishing a safe and pro-growth regulatory framework that will unleash innovation and advance the President’s mission to make America the world capital of crypto.”

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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A multi-million dollar guaranteed income pilot program is preparing for launch after a US state’s executive and legislative branches gave the green light.

The new initiative is designed to help citizens living in the low-income bracket in California.

The program, tentatively known as “Guaranteed Income Older Adults,” will target individuals who are 60 years of age or older residing in the state, and who are either eligible for or receiving a means-tested benefit of some kind from the government.

The California Department of Social Services (CDSS) says the total funding for the pilot program, which is catered for in California’s budget for the 2024/2025 fiscal year, will be $4.75 million.

Amid plans to roll out the guaranteed income pilot program, the CDSS says it held community listening sessions last year.

Some of the recommendations received include setting a minimum payment of $500 per month for at least half a year.

The CDSS says the minimum number of participants recommended for the pilot program was 200. A recommendation was also made to give the participants liberty to decide whether they want recurring payments, in a lump sum or a combination of both.

Ahead of the rollout of the Guaranteed Income Older Adults pilot program, the CDSS is now seeking a public or private nonprofit organization to run the project for three and a half years.

Those applications must be submitted by April 9th and the chosen application will be announced on June 25th.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Two of the largest banks in the US are reportedly locked in a legal battle over a $481 million commercial property loan.

Wells Fargo is suing JPMorgan Chase, the largest back in the US, over accusations it greenlighted a real estate loan even though it allegedly knew that the financial statements were fraudulent, reports Reuters.

In 2019, JPMorgan issued a loan to real estate development and investment firm Chetrit Group to finance the purchase of 43 multi-family buildings with 8,671 apartments across 10 states.

Acting as the investors’ trustee, Wells Fargo alleges that JPMorgan and Chetrit knew that the sellers had fraudulently inflated the buildings’ historical net operating income by 25% even before closing the deal at $522 million.

A property’s historical net income is a financial metric that measures the income generated by a building over a specific time frame. A property’s past earnings are typically used to assess its potential value.

Wells Fargo claims that JPMorgan approved the overvalued property deal to reap millions of dollars in fees, thinking that the assets would eventually be dumped on investors who wouldn’t realize the buildings were not as profitable as declared on paper.

Chetrit’s loan turned sour in 2022 and, in the process, Wells Fargo says investors in the trust have lost tens of millions of dollars.

“[JPMorgan] had an obligation to engage in due inquiry to determine the scope of the fraudulent reporting. Instead, [JPMorgan] plowed ahead as if nothing unusual had happened without even bothering to correct known errors in the numbers.”

Wells Fargo is asking the court to order JPMorgan to either pay for damages or repurchase the loan and make the investors whole.

JPMorgan and Chetrit have not yet issued a statement regarding the case.

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