Fidelity Investments is expanding its presence in digital assets with the launch of its first stablecoin, the Fidelity Digital Dollar (FIDD), which is expected to become available to both retail and institutional investors in the coming weeks.
Issued by Fidelity Digital Assets, FIDD is designed to offer a stable alternative to volatile cryptocurrencies by combining blockchain-based settlement with the price stability of the U.S. dollar. The firm said the token will be fully backed by dollar-denominated reserves and managed under Fidelity’s established operational and risk standards.
Mike O’Reilly, president of Fidelity Digital Assets, said the launch reflects years of internal research and preparation.
“We have spent years researching and advocating for the benefits of stablecoins,” O’Reilly said, adding that Fidelity views dollar-backed digital assets as a natural extension of modern financial infrastructure.
Institutional-grade digital dollar
Fidelity positions FIDD as an institutional-grade digital dollar, supported by the company’s broader financial ecosystem. Reserve assets will be managed by Fidelity Management & Research Company, while issuance, redemption, and custody services will be handled through Fidelity Digital Assets and Fidelity Crypto platforms.
FIDD will be transferable to any Ethereum mainnet address and is expected to be listed on major cryptocurrency exchanges, enabling both on-chain use and integration with existing trading venues.
According to Fidelity, the stablecoin aims to combine the efficiency and programmability of blockchain technology with the reliability of fiat currency, making it suitable for payments, settlement, and digital asset trading.
Timing and market context
Fidelity’s entry comes as the global stablecoin market has grown to more than $316 billion, and as regulatory clarity improves in the United States. The recent passage of the GENIUS Act has provided clearer rules for fiat-backed stablecoins, encouraging traditional financial institutions to enter the space.
“We’re thrilled to launch a fiat-backed stablecoin at a time of increasing regulatory clarity,” O’Reilly said, framing FIDD as a long-term component of Fidelity’s digital asset strategy rather than a short-term product launch.
A broader industry shift
The move underscores a broader trend of mainstream financial firms integrating blockchain-based products into their core offerings. With Fidelity joining companies such as Circle, PayPal, and major banks in issuing or supporting stablecoins, the sector continues to shift toward regulated, institutionally backed digital dollars.
Fidelity said FIDD is intended to complement—not replace—traditional financial instruments, signaling the firm’s view that stablecoins will play a growing role in payments, settlement, and digital asset markets alongside existing systems.
