Fidelity Investments, one of Wall Street’s largest asset managers and a major issuer of crypto exchange‐traded funds (ETFs), has unveiled plans to deepen its presence in the digital asset market with the launch of its own US dollar‐backed stablecoin.
The firm disclosed on Wednesday that it will introduce the Fidelity Digital Dollar, or FIDD, a dollar‐pegged cryptocurrency built on the Ethereum blockchain.
Fidelity Details Rollout Of Its FIDD Stablecoin
FIDD will mark the firm’s first stablecoin and will be issued by Fidelity Digital Assets, National Association. The company said the token will be available to both retail and institutional investors and is expected to roll out in the coming weeks.
The stablecoin will be supported by the operational and security standards of the Fidelity Digital Assets, which the company says are institutional‐grade and built on more than ten years of research and development in the digital asset sector.
The asset manager emphasized that FIDD will operate as a fully integrated stablecoin offering within its broader financial ecosystem. Management of the reserve assets backing the stablecoin will be handled by Fidelity Management & Research Company LLC.
Investors will be able to purchase and redeem FIDD at a one‐to‐one value with the US dollar through Fidelity Digital Assets, Fidelity Crypto, and Fidelity Crypto for Wealth Managers.
In addition, the stablecoin will be listed on major cryptocurrency exchanges where it becomes available, and holders will be able to transfer FIDD freely to any address on the Ethereum mainnet.
Clearer US Crypto Rules To Roll Out Digital Dollar
The move comes as the stablecoin sector continues to expand rapidly, boosted by advancements in regulation under President Donald Trump. Last year, the country passed its first crypto bill, the GENIUS Act, which provides a framework for stablecoins.
Mike O’Reilly, president of Fidelity Digital Assets, said the passage of the GENIUS Act marked a turning point for the industry by establishing clear regulatory standards for payment stablecoins.
He added that the company is launching FIDD at a moment of increasing regulatory certainty, which he believes will help meet client demand, broaden choice in the market, and support the evolution toward a more efficient financial system.
O’Reilly also said the asset manager has long believed in the potential of digital assets and has spent years researching and promoting the role stablecoins can play in modern finance.
As both a leading asset manager and an early mover in digital assets, he said Fidelity is well positioned to deliver on‐chain utility to investors through a dollar‐backed token like FIDD.
Featured image from OpenArt, chart from TradingView.com
