Fidelity Investments to Launch FIDD Stablecoin on Ethereum Blockchain

Highlights:

• The FIDD stablecoin is fully backed by cash, cash equivalents, and short-term U.S. Treasuries.
• FIDD aims to support both institutional settlements and retail payments on-chain.
• FIDD will comply with the GENIUS Act and ensure daily transparency in reserves.

$6 trillion asset manager Fidelity Investments is set to introduce its first stablecoin, the Fidelity Digital Dollar (FIDD), marking a major step into the blockchain-based finance sector. The stablecoin will be built on the Ethereum network and will serve both retail and institutional consumers.

It seeks to provide secure and efficient digital asset solutions, driven by Fidelity’s experience of many years in asset management. According to the press release, the FIDD stablecoin is backed by cash, cash equivalents, and short-term U.S. Treasuries, making it a stable and reliable digital dollar.

BREAKING:

🇺🇸 $5.9 trillion Fidelity will launch its own stablecoin ‘FIDD’ on Ethereum. pic.twitter.com/tagAy4NCsN

— Ash Crypto (@AshCrypto) January 28, 2026

FIDD Stablecoin’s Key Features

Fidelity Digital Assets, a federally chartered national bank and subsidiary of Fidelity, will issue the FIDD stablecoin. It will be redeemable on Fidelity’s crypto trading platforms, such as Fidelity Digital Assets and Fidelity Crypto, for $1. Moreover, the stablecoin will have multiple applications, like 24/7 institutional settlement and on-chain retail payments. With the launch of FIDD, Fidelity aims to deliver more utility in blockchain to financial product offerings.

In addition, the backing of the stablecoin will align with the requirements of the new federal GENIUS Act, which mandates safe reserves to back stablecoins. The introduction of the FIDD stablecoin is regarded as a response to the growing interest of clients for low-priced payment and settlement options.

Fidelity will publish daily disclosures on the reserves of the coin as well as frequent third-party attestations. This disclosure will aid in establishing trust that users may have regarding whether FIDD is fully backed by its declared reserves. Initially, Fidelity announced its plans to test a stablecoin in 2025, though the company did not commit to the official launch back then.

JUST IN: $6 trillion asset manager Fidelity to launch crypto stablecoin.

— Watcher.Guru (@WatcherGuru) March 26, 2025

Fidelity’s Strategy for the Future of Blockchain Finance

The entry of Fidelity into the stablecoin market is a broader vision of the future of on-chain financial products. According to Mike O’Reilly, a Fidelity Digital Assets president, the FIDD is just the beginning. He also noted that the stablecoin would serve as a foundation element for future on-chain products. As the popularity of decentralized finance (DeFi) protocols gains interest, Fidelity is establishing itself to offer a variety of financial services based on blockchain.

The stablecoin is also a strategic step by Fidelity to introduce additional financial services into blockchain networks. Fidelity is creating a more efficient on-chain infrastructure by issuing its own stablecoin, which will eventually be able to support more financial products.

The introduction of the stablecoin by Fidelity puts it in direct competition with crypto-native issuers such as Circle and Tether. These firms now dominate the market of stablecoins worth $308 billion. Tether recently unveiled the launch of a dollar-backed stablecoin, USA₮, in the U.S. Meanwhile, the firm has ventured into the exchange-traded funds market with spot Bitcoin and Ethereum ETFs. It also launched a spot Solana ETF in November, which has garnered net inflows of over $150 million.