Fidelity is launching its own stablecoin

"Fidelity is launching a stablecoin that investors will be able to buy and sell for $1 when it arrives in the "coming weeks." The stablecoin, called Fidelity Digital Dollar (FIDD), will live on the Ethereum network and is backed by cash reserves, cash equivalents, and short-term US Treasuries, according to CoinDesk. A stablecoin is a type of cryptocurrency that's typically pegged to an asset, like the US dollar."

"More companies and financial institutions have started launching stablecoins of their own after President Donald Trump signed the GENIUS Act last July, which lays out a framework for the digital currency. In addition to introducing a 100 percent reserve backing requirement, the law also gives stablecoin holders priority over other creditors in case of a crash, likely to help avoid a repeat of the collapse of the algorithm-backed Terra stablecoin in 2022."

Fidelity will launch a stablecoin named Fidelity Digital Dollar (FIDD) in the coming weeks, priced at $1 and redeemable at that value. FIDD will operate on the Ethereum mainnet and will be backed by cash reserves, cash equivalents, and short-term US Treasuries. The GENIUS Act introduced a framework requiring 100 percent reserve backing and gives stablecoin holders priority over other creditors in a crash, aiming to prevent failures like the Terra collapse. FIDD will be available on Fidelity platforms and on unspecified major cryptocurrency exchanges, and holders can transfer it to any Ethereum address.

Read at The Verge