Fidelity Plans to Launch Dollar-Backed FIDD Stablecoin on Ethereum

Fidelity Investments, one of the world’s largest asset managers with about $6 trillion under management, plans to launch its own stablecoin on the Ethereum network.

The stablecoin will be called Fidelity Digital Dollar (FIDD) and will be fully backed 1:1 by the U.S. dollar. According to reports, FIDD will launch in the coming weeks. It will be available on Fidelity’s own trading platforms and on major crypto exchanges.

Fidelity will offer the stablecoin through Fidelity Digital Assets, Fidelity Crypto, and Fidelity Crypto for Wealth Managers. Fidelity says the stablecoin will help make payments and settlements faster and cheaper.

Mike O’Reilly, president of Fidelity Digital Assets, said stablecoins allow real-time, 24/7 transactions and better cash management for both retail and institutional users.

Regulatory Clarity Drives Fidelity’s Stablecoin

The stablecoin will be issued by Fidelity Digital Assets, National Association, a federally regulated trust bank. The reserves backing FIDD will be managed by Fidelity Management & Research Company and will include cash and short-term U.S. dollar assets.

This launch is part of Fidelity’s growing push into crypto. The company already offers crypto trading, custody services, a crypto trading app, and a crypto IRA that supports Bitcoin, Ethereum, and Litecoin. Fidelity also runs Bitcoin, Ethereum, and Solana ETFs.

Fidelity’s move comes as U.S. regulations become clearer for stablecoins. Since the GENIUS Act was signed into law, more banks and financial institutions have shown interest in launching their own stablecoins. JPMorgan, Bank of America, and even U.S. states are exploring similar plans.

The stablecoin market continues to grow fast and is now worth about $312 billion. U.S. Treasury Secretary Scott Bessent believes the market could reach $3 trillion by 2030, showing strong demand for regulated digital dollars.