Fidelity to launch FIDD stablecoin on Ethereum as US rules clear

Fidelity Investments said on Wednesday it will launch a stablecoin called the Fidelity Digital Dollar (FIDD) on Ethereum, with the token expected to become available on exchanges in the coming weeks for institutional and retail investors. The firm said FIDD will be fully backed by reserves and will be issued by Fidelity Digital Assets, National Association, the company’s national trust bank, which received conditional approval to operate from the US Office of the Comptroller of the Currency a month ago.

The move comes as the stablecoin market tops more than $316 billion and trading volume sits just below $100 billion, with market leaders Tether (about 60% share, market cap over $186 billion) and Circle (market cap over $71 billion) still dominant, according to the report. Fidelity framed the launch as part of its long-term research into digital assets.

“At Fidelity, we have a long-standing belief in the transformative power of the digital assets ecosystem and have spent years researching and advocating for the benefits of stablecoins,” said Mike O’Reilly, resident of Fidelity Digital Assets, in a statement. O’Rielly also cited increased regulatory clarity, saying the passage of the GENIUS Act was a “significant milestone” for payment stablecoins.

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