Fidelity unveils FIDD stablecoin backed by U.S. dollars and regulatory clarity

• Fidelity launches FIDD, a U.S. dollar stablecoin built on Ethereum infrastructure

• FIDD enters the stablecoin market with full dollar backing and regulatory clarity

• Fidelity rolls out FIDD to connect traditional finance with onchain payments

Fidelity Investments has announced the launch of its first stablecoin, expanding its digital asset strategy. The company introduced the Fidelity Digital Dollar, branded as FIDD. The move places Fidelity among major traditional firms entering regulated digital dollar infrastructure.

The stablecoin will operate as a U.S. dollar backed token on blockchain networks. It will support both retail and institutional use cases across payment and settlement functions. The launch reflects rising demand for regulated onchain financial products.

Fidelity positioned FIDD as a stable alternative to volatile cryptocurrencies. The token aligns with recent regulatory developments supporting payment stablecoins. As a result, the launch arrives during a period of increased market confidence.

FIDD strengthens Fidelity’s regulated digital asset infrastructure

Fidelity Digital Assets will issue FIDD through its federally chartered national bank structure. The company designed the stablecoin to maintain a one to one value with the U.S. dollar. Therefore, the token aims to provide price stability and operational efficiency.

Reserve asset management will remain under Fidelity Management and Research Company. This structure leverages existing portfolio oversight experience. Consequently, Fidelity integrates stablecoin reserves within its broader financial framework.

Fidelity will support purchases and redemptions through multiple internal platforms. These platforms include Fidelity Digital Assets and Fidelity Crypto services. In addition, the company plans to provide daily reserve and supply disclosures.

Ethereum launch expands access and transferability

Fidelity will deploy FIDD on the Ethereum mainnet at launch. The blockchain choice enables compatibility with existing onchain payment systems. As a result, users can transfer the token to any compatible Ethereum address.

The company expects FIDD to appear on major cryptocurrency exchanges. This availability supports liquidity and accessibility across markets. Meanwhile, Fidelity platforms will allow direct redemption at a fixed dollar value.

Ethereum support also enables future integration with decentralized settlement tools. However, Fidelity maintains strict operational controls around issuance. The approach balances open transferability with institutional compliance standards.

Regulatory clarity supports market timing

Fidelity cited recent U.S. regulatory progress as a key launch driver. The passage of the GENIUS Act established clearer rules for payment stablecoins. Therefore, the firm moved forward with a regulated digital dollar product.

The global stablecoin market now exceeds three hundred sixteen billion dollars. At the same time, traditional financial institutions explore reserve backed digital assets. Fidelity views FIDD as aligned with this structural shift.

The timing also follows growing institutional interest in blockchain settlement. Regulatory guardrails reduce uncertainty for large financial firms. Consequently, Fidelity sees stablecoins as part of modern financial rails.

FIDD marks a milestone in Fidelity’s digital asset strategy

Fidelity began building digital asset infrastructure more than a decade ago. The firm launched Fidelity Digital Assets to support institutional crypto services. Since then, it has expanded custody and trading capabilities.

The company tested stablecoin concepts internally before confirming a public rollout. FIDD now represents a production level digital dollar offering. Therefore, the launch formalizes years of research and development.

Fidelity aims to support broader customer choice through regulated digital assets. The firm also seeks to improve payment efficiency across markets. As stablecoins gain prominence, FIDD becomes a central component of Fidelity’s evolving strategy.