Fidelity to Launch Dollar-Backed Stablecoin FIDD on Ethereum in Coming Weeks

Fidelity Investments, one of the world’s largest asset managers, is preparing to enter the stablecoin market with its own U.S. dollar-backed token, the Fidelity Digital Dollar (FIDD), set to launch on the Ethereum blockchain in the coming weeks. The move underscores traditional finance’s accelerating embrace of blockchain rails and on-chain money. 

FIDD will be issued by Fidelity Digital Assets, National Association, a national trust bank affiliate, and is designed to maintain a 1:1 peg to the U.S. dollar, with reserves held in cash, cash equivalents and short-term U.S. Treasuries. The stablecoin will be available for both retail and institutional investors, and holders will be able to buy, redeem and transfer FIDD to any Ethereum mainnet address once it goes live. 

Fidelity says the launch comes amid a new U.S. regulatory framework for stablecoins — notably the GENIUS Act, which mandates full reserve backing and gives stablecoin holders priority over other creditors in case of issuer distress — providing greater clarity for institutional entrants. 

“At Fidelity, we have a long-standing belief in the transformative power of the digital assets ecosystem and have spent years researching and advocating for the benefits of stablecoins,” said Mike O’Reilly, President of Fidelity Digital Assets. “We’re thrilled to launch a fiat-backed stablecoin at a time of increasing regulatory clarity to better support our customers’ needs and provide choice in the marketplace.”

Fidelity’s stablecoin will compete in a crowded market already dominated by established digital dollars like USDC and USDT, but its entry — backed by a major traditional financial firm with deep asset-management expertise — highlights the growing institutional interest in blockchain-based settlement, payments and liquidity solutions.