Fidelity Investments is preparing to launch its own U.S. dollar–backed stablecoin, the Fidelity Digital Dollar (FIDD), in the coming weeks. The token will run on Ethereum and be issued through Fidelity Digital Assets, with reserves held in cash, cash equivalents, and short-term U.S. Treasuries. FIDD is designed for 24/7 settlement, on-chain payments, and institutional transfers, and will be available to both retail and institutional clients.
The GENIUS Act provides a regulatory framework for stablecoin issuers in the United States. Fidelity says that regulatory clarity made this the right moment to bring a product to market. Fidelity is entering a crowded market dominated by USDC and USDT, but its arrival reinforces a broader shift. Stablecoins are no longer just a crypto-native product; they are becoming core financial infrastructure, and traditional asset managers now want a seat at the table.
The development underscores a broader trend as traditional finance embraces on-chain settlement and regulated digital assets. While competition remains fierce, Fidelity’s entry signals that stablecoins are moving toward mainstream financial infrastructure. As institutions explore on-chain payments, the line between crypto and traditional finance continues to blur.
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