Journalist
Tanzeel Akhtar
Journalist
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Fidelity Investments is preparing to enter the stablecoin market with the upcoming launch of its first digital dollar token, Fidelity Digital Dollar (FIDD).
In an announcement on Wednesday Fidelity one of the world’s largest asset managers said it is entering into regulated on-chain payments and blockchain-based financial infrastructure.
The stablecoin will be issued by Fidelity Digital Assets, National Association and is expected to be available to both retail and institutional investors in the coming weeks.
Fidelity said the product is designed to combine the reliability of the U.S. dollar with the operational benefits of blockchain technology.
A Digital Dollar Backed by Fidelity’s Institutional Infrastructure
FIDD will aim to provide investors with a stable digital representation of the U.S. dollar, supported by Fidelity’s institutional-grade custody and security framework. The company explains that the token will be built on more than a decade of digital asset research and development.
“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 a digital assets pioneer, Fidelity is uniquely positioned to provide investors with on-chain utility via a digital dollar.”
Full-Service Stablecoin Model: Issuance, Reserves, and Redemption
Fidelity said the key functions of FIDD will be supported by multiple Fidelity business units, offering what it described as a full-service stablecoin model.
Reserve asset management will be conducted by Fidelity Management & Research Company LLC, leveraging the firm’s longstanding experience overseeing client assets.
Eligible customers will be able to purchase or redeem FIDD tokens directly through Fidelity platforms, including Fidelity Digital Assets, Fidelity Crypto, and Fidelity Crypto for Wealth Managers, at a 1:1 exchange rate for U.S. dollars.
FIDD will also be available on major exchanges where listed, and holders will be able to transfer the token to any Ethereum mainnet address. Fidelity will publish daily disclosures on circulating supply and reserve net asset value on its website.
Launch Comes Amid Regulatory Clarity and Market Growth
Fidelity’s entry comes as stablecoins continue to expand rapidly, with the market now exceeding $316 billion in total capitalization.
The company also pointed to the recent passage of the GENIUS Act as a key development in providing clearer regulatory guardrails for payment stablecoins in the United States.
“We’re thrilled to launch a fiat-backed stablecoin at a time of increasing regulatory clarity,” O’Reilly said, adding that the goal is to support customer choice and enable a more efficient financial system.
Reports have been circulating for a while that Fidelity was preparing to launch its own stablecoin — and now the firm is officially set to roll out the Fidelity Digital Dollar.
Fidelity Expands Its Digital Asset Ecosystem
Fidelity has been building its digital assets strategy since 2014, developing infrastructure and services comparable to those offered in traditional markets, including research, custody, trading, and investment products.
The launch of FIDD marks the firm’s latest step in broadening its digital asset offerings for intermediaries, institutions, and retail investors as stablecoins become a central component of modern financial rails.
