TLDR
- Fidelity Investments has launched its first stablecoin, the Fidelity Digital Dollar (FIDD).
- FIDD is backed by the U.S. dollar and aims to provide a stable alternative to volatile cryptocurrencies.
- The stablecoin will be available to both retail and institutional investors in the coming weeks.
- Fidelity Digital Assets is responsible for issuing and managing FIDD, with reserve assets handled by Fidelity Management & Research Company.
- FIDD will be available on major exchanges and can be transferred to any Ethereum mainnet address.
Fidelity Investments has entered the digital asset space with the launch of its first stablecoin, the Fidelity Digital Dollar (FIDD). The new stablecoin aims to offer a reliable alternative to volatile cryptocurrencies, backed by the U.S. dollar. FIDD will be available to both retail and institutional investors in the coming weeks, marking a significant step for the firm in digital finance.
FIDD to Provide Stability in Digital Assets
Fidelity Digital Assets, a subsidiary of Fidelity Investments, issued FIDD. The firm’s President, Mike O’Reilly, emphasized that Fidelity has been researching and advocating for stablecoins for years. According to O’Reilly, “We have spent years researching and advocating for the benefits of stablecoins,” showcasing the company’s long-term commitment to digital asset solutions.
The Fidelity Digital Dollar is backed by the U.S. dollar and follows Fidelity’s high operational standards. The coin aims to combine blockchain technology’s advantages with the stability of fiat currency. Investors will be able to purchase or redeem FIDD at a 1:1 ratio with U.S. dollars.
FIDD will benefit from Fidelity’s vast financial infrastructure. Fidelity Management & Research Company will manage reserve assets for the stablecoin. The coin will be available on major exchanges, and investors can transfer it to any Ethereum (ETH) mainnet address.
Fidelity also plans to release daily updates on the circulating supply and reserve net asset value. This will provide transparency for users and investors. FIDD will be accessible through Fidelity Digital Assets, Fidelity Crypto, and Fidelity Crypto for Wealth Managers.
Regulatory Clarity Fuels Fidelity Entry into the Stablecoin Market
Fidelity’s decision to launch FIDD comes at a time of growing regulatory clarity in the stablecoin market. The passage of the GENIUS Act provided clearer federal guidelines for stablecoins, boosting investor confidence. O’Reilly noted, “We’re thrilled to launch a fiat-backed stablecoin at a time of increasing regulatory clarity,” signaling the firm’s confidence in the evolving regulatory landscape.
The global stablecoin market has seen rapid growth, with its total capitalization exceeding $316 billion. Fidelity’s entry comes as banks worldwide explore their own reserve-backed digital payment solutions. The company’s move reflects growing institutional interest in blockchain-based settlement.
Fidelity’s digital asset infrastructure development began in 2014, and the company officially launched Fidelity Digital Assets in 2019. After testing stablecoin concepts in early 2025, the firm is now moving forward with FIDD. The launch is part of a broader effort to modernize financial systems and increase customer choice in digital asset solutions.
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