u.today
Fidelity announced Wednesday that it intends to launch the Fidelity Digital Dollar (FIDD).
The move places the $12 trillion asset manager on a direct collision course with Ripple and Tether.
The Ethereum-based token, which is set to go live in early February, represents one of the most significant entries of a traditional financial heavyweight into the on-chain economy.
It arrives shortly after Tether unveiled its US-focused "USAT" token and amid Ripple's aggressive expansion of its $RLUSD stablecoin into corporate treasuries.
Mike O’Reilly, president of Fidelity Digital Assets, confirmed that the launch was prompted by the passage of the GENIUS Act, the new federal framework that standardizes reserve requirements for payment stablecoins.
FIDD will be issued by Fidelity Digital Assets, a federally chartered national bank, which sets it apart from offshore competitors.
A Ripple rival?
Ripple has spent the last year pitching $RLUSD as the "enterprise-grade" solution for cross-border settlement. Fidelity is now targeting that exact same client base. As reported by U.Today, $RLUSD recently appeared among the top five USD stablecoins.
Fidelity's soon-to-be-launched token will initially serve institutional clients needing 24/7 settlement and retail users on the Fidelity Crypto app.