Fidelity Investments will launch the Fidelity Digital Dollar (FIDD) in early February, entering the regulated stablecoin market with a product aimed at both institutional settlement and on-chain retail payments. The token will be issued by Fidelity Digital Assets.
Fidelity Investments will launch the FIDD stablecoin next month. It will be a token pegged to the value of the US dollar and fully backed by the company’s cash reserves. Fidelity has also committed to daily public disclosures of the issued volume and reserve value, supplemented by periodic third-party attestation to verify these reserves.
According to the company, the stablecoin will initially operate on the Ethereum mainnet, although the company stated that it may later operate on other blockchains and layer-2 networks to expand its interoperability and product reach.
Another important detail is that FIDD will be available on Fidelity’s platforms, including Fidelity Digital Assets, the Fidelity Crypto app, and Fidelity Crypto for Wealth Managers, and will be listed on major cryptocurrency exchanges to enable broader usability.
The company’s entry into the market positions FIDD up against incumbents such as USDC and USDT in a market exceeding $308 billion, while also placing it alongside new entrants seeking bank-level regulatory compliance.
FIDD Regulation and Operation
One of the keys to the success of this launch is that Fidelity is issued by a national bank and operates under the rules of the GENIUS Act, so everything indicates that it can be used with complete freedom and support.
For the product and compliance teams, the key operational metrics to monitor will be the composition of reserves, the cadence and scope of third-party attestations, on-chain liquidity through listings, and any expansion to additional chains that may introduce new custody or settlement vectors.
Investors and institutional users will now closely observe the first weeks of issuance and initial attestations; early redemption flows, exchange listings, and cross-chain availability will serve as practical proof of Fidelity’s thesis that a bank-backed stablecoin can offer regulated and lower-cost rails for on-chain finance.
