Haciyev Reşit 
Fidelity Investments, one of the world’s largest asset management firms, has announced that it will launch its own stablecoin, taking a bold step toward the future of blockchain-based finance. This move once again highlights the growing interest of traditional financial institutions in digital assets. The new stablecoin, branded as Fidelity Digital Dollar (FIDD), will operate on the Ethereum network and will be fully compliant with the newly enacted federal GENIUS Act. Through this initiative, Fidelity aims to offer a regulatory-compliant, institution-grade onchain payment and settlement instrument.
Fidelity’s Strategic Move into Onchain Finance
Fidelity Investments is preparing to officially launch its first stablecoin, FIDD, starting in February. This development is being viewed as a critical milestone in the integration of traditional finance into onchain financial systems. FIDD will be issued by Fidelity Digital Assets, the company’s digital asset arm that operates under Fidelity’s federally licensed national bank structure. This setup is intended to ensure strong regulatory compliance and security for the stablecoin.
The Ethereum-based stablecoin will be usable at a 1:1 peg with the US dollar across Fidelity Digital Assets, Fidelity Crypto, and Fidelity Crypto for Wealth Managers platforms. Users will be able to utilize FIDD for both institutional transactions and individual payments. Additionally, Fidelity plans to list FIDD on major cryptocurrency exchanges in the future to enhance its liquidity, a move expected to accelerate adoption.
Fully Compliant Reserve Structure Under the GENIUS Act
Fidelity stated that FIDD’s reserves will consist entirely of cash, cash equivalents, and short-term US Treasury bills. This reserve structure will fully comply with the requirements of the GENIUS Act, which establishes clear standards for payment stablecoins.
Mike O’Reilly, President of Fidelity Digital Assets, commented on the initiative:
“This is the next step in the evolution of our digital asset platform. Offering a fiat-backed stablecoin aligns perfectly with our clients’ expectations, particularly when it comes to low-cost payments and settlement.”
The company also announced that it will disclose the size of FIDD’s reserves and its circulating supply on a daily basis, along with publishing regular third-party audit reports.
Designed for Institutional and Retail Use
FIDD is designed to support 24/7 uninterrupted payment and settlement processes for institutional investors, while enabling onchain payments for retail users. The ability to transfer the stablecoin directly to any Ethereum mainnet address allows FIDD to integrate seamlessly with decentralized finance (DeFi) protocols and other blockchain-based platforms. This functionality ensures that FIDD can be actively used not only within closed ecosystems but across the broader onchain financial infrastructure.
Fidelity’s entry into the stablecoin market also signals direct competition with dominant industry players such as Circle’s USDC and Tether’s USDT, which together control a stablecoin market exceeding $300 billion. Experts suggest that the participation of a well-established financial institution like Fidelity could intensify competition while strengthening transparency and institutional standards across the stablecoin ecosystem.
A Strong Foundation for Onchain Finance
Fidelity Investments’ FIDD initiative clearly demonstrates that the boundaries between traditional finance and blockchain-based systems are increasingly fading. With its transparent, GENIUS Act-compliant reserve structure, Ethereum-based technical infrastructure, and broad use cases appealing to both institutional and retail users, FIDD provides a strong foundation for the continued evolution of onchain financial products. According to experts, this move goes beyond a simple stablecoin launch and represents a strategic step that could accelerate the transition of major financial institutions toward blockchain-based payments, settlement, and financial services.
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