Fidelity Investments is set to launch its first stablecoin to investors in the coming weeks.
The Fidelity Digital Dollar (FIDD) will be issued by Fidelity Digital Assets and made available to both retail and institutional investors.
“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, president of Fidelity Digital Assets.
FIDD is designed to provide investors with a stable digital dollar, pairing the benefits of blockchain technology with the reliability of the US dollar.
FIDD will be backed by Fidelity Digital Assets’ institutional-grade security and long-standing digital asset expertise.
FIDD’s core functions will be supported by Fidelity Investments businesses, providing investors with a full-service stablecoin model spanning reserve management, issuance, and distribution.
Reserve assets will be managed by Fidelity Management & Research Company LLC, while investors will be able to purchase and redeem FIDD at $1 across Fidelity Digital Assets, Fidelity Crypto, Fidelity Crypto for Wealth Managers, and participating exchanges, with transfers supported on the Ethereum mainnet.
Fidelity will also publish daily disclosures on FIDD’s circulating supply and reserve net asset value at the close of each business day.
“The recent passage of the GENIUS Act was a significant milestone for the industry in providing clear regulatory guardrails for payment stablecoins,” added O’Reilly.
“We’re thrilled to launch a fiat-backed stablecoin at a time of increasing regulatory clarity to better support our customers’ needs, provide choice in the marketplace, and enable continued progress towards a more efficient financial system.”
