Fidelity Investments has officially entered the competitive stablecoin arena with the launch of the Fidelity Digital Dollar (FIDD), a U.S. dollar-backed stablecoin built on the Ethereum blockchain. Issued by Fidelity Digital Assets, National Association, FIDD is designed to serve both retail and institutional investors, marking a significant expansion of the financial giant's on-chain presence and digital asset strategy.
The stablecoin is backed 1:1 by reserves comprising cash and short-term U.S. Treasuries, managed by Fidelity Management & Research Company LLC. Fidelity has committed to daily transparency, publishing the circulating supply and net asset value at the close of each business day on its website. "At Fidelity, we have a long-standing belief in the transformative power of the digital assets ecosystem," said Mike O'Reilly, President of Fidelity Digital Assets. "As a leading asset manager and digital assets pioneer, Fidelity is uniquely positioned to provide investors with onchain utility via a digital dollar."
FIDD can be directly purchased and redeemed for $1 on Fidelity's own platforms—Fidelity Digital Assets, Fidelity Crypto, and Fidelity Crypto for Wealth Managers. It is also listed and available for trading on external major exchanges and is transferable across any Ethereum mainnet address.
The launch comes amid a stablecoin market that has surpassed $316 billion in capitalization and follows the recent passage of the GENIUS Act in the U.S., which provided clearer federal regulatory frameworks for payment stablecoins. "The recent passage of the GENIUS Act was a milestone for the industry in providing clear regulatory guardrails," O'Reilly noted, stating the regulatory clarity enabled Fidelity to launch a product designed for mainstream financial use.
This move is part of Fidelity's broader, decade-long investment in digital asset infrastructure, which includes trading, custody, and research services. The company positions FIDD as a foundational tool to bridge traditional finance and blockchain, enabling faster settlement and supporting future applications in tokenized finance.
