$6 Trillion Asset Manager Fidelity Launching Its Own Crypto Stablecoin
Fidelity Investments has officially announced the launch of its new Ethereum-based stablecoin, the Fidelity Digital Dollar (FIDD), on Wednesday, January 28, 2026. The stablecoin is expected to be available in the coming weeks for both institutional and retail clients across various platforms.
Key Details
Asset Backing: The FIDD token is fully backed on a 1-to-1 basis with reserves of cash, cash equivalents, and short-term U.S. Treasury securities.
Issuer: It is issued by Fidelity Digital Assets, a federally chartered national bank and a subsidiary of Fidelity.
Regulatory Compliance: The stablecoin adheres to the standards set by the new federal GENIUS Act, a regulatory framework for stablecoin issuers passed in July.
Platform Availability: FIDD will be redeemable for $1 on Fidelity's crypto trading platforms, including Fidelity Digital Assets, Fidelity Crypto, and Fidelity Crypto for Wealth Managers, and will also be available on major crypto exchanges.
Purpose: Fidelity views stablecoins as foundational payment and settlement instruments that offer benefits like 24/7 real-time settlement and low-cost treasury management.
Transparency: Fidelity will provide daily disclosures of FIDD issuance and reserves, along with regular third-party audits.
Market Context
Fidelity's entry into the stablecoin market places it in direct competition with established players like Circle's USDC and Tether's USDT.
This move is part of a broader trend where traditional financial institutions, including rivals like BlackRock and Franklin Templeton, are expanding their presence in digital assets and tokenized U.S. Treasuries.
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