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Fidelity Investments on Wednesday revealed plans to launch its own U.S. dollar-pegged stablecoin, marking a significant expansion of the asset manager’s digital assets strategy and its deepest move yet into blockchain-based payments.
Fidelity Stablecoin Set to Compete With USDT and USDC
Fidelity Investments said its forthcoming token, known as the Fidelity Digital Dollar ($FIDD), will maintain a strict one-to-one backing with cash, cash equivalents, and short-term U.S. Treasuries held and managed in-house, according to a Bloomberg report.
The firm oversees roughly $6 trillion in assets under management, making it one of the largest traditional financial institutions to issue a stablecoin directly. According to the announcement, $FIDD is expected to launch in the coming weeks, potentially as early as February, and will initially operate on the Ethereum network.
The stablecoin will be available to both institutional and retail users through Fidelity platforms and select exchanges, allowing clients to move U.S. dollar value onchain with round-the-clock settlement. The issuer will be Fidelity Digital Assets, National Association, a regulated national trust bank subsidiary.
Fidelity said the structure is designed to meet U.S. compliance requirements, including transparency around reserves and anti-money laundering controls, in line with recently adopted federal stablecoin standards. Mike O’Reilly, president of Fidelity Digital Assets, said stablecoins play an increasingly important role in providing continuous liquidity and lower-cost settlement for digital asset markets.
He framed the launch as a response to growing client demand for blockchain-based payment and trading infrastructure. Fidelity’s entry places it in direct competition with major stablecoin issuers such as Tether and Circle, which together dominate the current market.
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The global stablecoin supply is estimated at roughly $308 billion, with dollar-linked tokens widely used for trading, decentralized finance ( defi), and cross-border transfers. The move builds on Fidelity’s long-standing involvement in digital assets, including early bitcoin mining, institutional custody services launched in 2018, and the offering of spot crypto exchange-traded funds.
It also follows earlier testing of stablecoin-related products and filings tied to tokenized money market funds. More broadly, Fidelity’s announcement reflects accelerating integration between traditional finance and crypto markets, as large asset managers explore blockchain rails for payments, settlement, and asset tokenization.
FAQ 💲
- What is Fidelity Digital Dollar ($FIDD)?It is a planned U.S. dollar-pegged stablecoin fully backed by cash and short-term Treasuries.
- Who will issue the Fidelity stablecoin?The token will be issued by Fidelity Digital Assets, National Association, a regulated trust bank subsidiary.
- Which blockchain will $FIDD use at launch?Fidelity plans to launch the stablecoin initially on the Ethereum network.
- Who can use Fidelity’s stablecoin?$FIDD is expected to be available to both institutional and retail clients through Fidelity platforms and select exchanges.