"Fidelity Investments, one of the largest asset managers on the planet, announced on Wednesday it will launch its own stablecoin. Like other stablecoins, Fidelity's token-known as the Fidelity Digital Dollar or FIDD-will be fully backed by reserves to ensure it maintains a 1-to-1 peg to the dollar. The company said FIDD will be available from Fidelity and on exchanges in the coming weeks, and that it will be available to both institutional and retail clients."
"Fidelity is known primarily as an upscale brokerage and asset manager that deals in traditional offerings like stocks and bonds. At the same time, it stood out during the early days of crypto as one of the first mainstream financial firms to embrace blockchain under longtime CEO Abigail Johnson, and even dabbled in Ethereum mining as far back as 2014."
"In announcing FIDD's launch, O'Reilly touted the company's longtime experience in digital assets as a competitive advantage. This could be significant at a time when the stablecoin market has become increasingly competitive, and as it evolves rapidly following the recent passage of the Genius Act, a landmark piece of legislation that provides a U.S. regulatory framework for the digital dollars."
Fidelity Investments will launch the Fidelity Digital Dollar (FIDD), a stablecoin fully backed by reserves to maintain a 1-to-1 peg to the U.S. dollar. FIDD will be available from Fidelity and on exchanges in the coming weeks to both institutional and retail clients. The move follows earlier tests and a prior public position that there were no launch plans. Fidelity brings long-running digital-assets experience and early crypto engagement, including Ethereum mining in 2014. The launch enters a competitive market of roughly $315 billion, dominated by Tether globally and by Circle's USDC within the United States, and follows new U.S. regulatory framing from the Genius Act.
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