Fidelity Joins the Race! The Giant Name Announces It Will Launch Its Own Stablecoin, Revealing Its Chosen Altcoin!

According to Bloomberg, Fidelity Investments is preparing to launch a US dollar-based stablecoin within a few weeks.

According to the announcement, Fidelity Digital Dollar ($FIDD) will be launched in accordance with the standards of the new $GENIUS Act regarding stablecoins for payment purposes.

Furthermore, $FIDD will be launched by Fidelity Digital Assets, a federally mandated national bank and a subsidiary of Fidelity.

$FIDD will be backed by cash reserves, cash equivalents, and short-term U.S. Treasury bonds managed by Fidelity.

Fidelity’s $GENIUS-compatible stablecoin, $FIDD, will initially launch on Ethereum (ETH). However, Fidelity has indicated that it may consider expanding to additional blockchains or layer-2 networks in the future.

Mike O’Reilly, President of Fidelity Digital Assets, said, “This is the next step in the evolution of our digital asset platform. The ability to offer a fiat-backed stablecoin naturally aligns with our customers’ demands, particularly for low-cost payments and exchange transactions.”

This stablecoin targets use cases such as 24/7 enterprise payment processing and off-chain retail payments, putting Fidelity in direct competition with dominant issuers like Circle’s USDC and Tether’s USDT.

*This is not investment advice.