- Fidelity Investments plans to issue a fiat-backed stablecoin called Fidelity Digital Dollar (FIDD).
- FIDD will launch on Ethereum and be issued by Fidelity Digital Assets, National Association, a national trust bank with conditional OCC approval in December.
- The coin’s reserves will include cash, cash equivalents, and short-term U.S. Treasuries managed by Fidelity, following the GENIUS Act standards.
- Fidelity faces competition from bank-issued coins and major stablecoins like Tether and Circle.
- Mike O’Reilly said the GENIUS Act enabled the timing and that a stablecoin supports on-chain financial services growth.
Fidelity Investments, a $6 trillion asset manager, said it will introduce a fiat-backed stablecoin called Fidelity Digital Dollar (FIDD) in late January 2026, according to a Watcher.Guru tweet. The coin will be issued on Ethereum by Fidelity Digital Assets, National Association, the firm’s national trust bank that won conditional approval from the U.S. Office of the Comptroller of the Currency in December.
FIDD’s reserves will consist of cash, cash equivalents, and short-term U.S. Treasuries managed by Fidelity, aligned with the reserve standards set by the federal GENIUS Act. The company framed the product as a response to client demand for lower-cost payments and settlement.
Mike O’Reilly, president of Fidelity Digital Assets, described the launch as a natural extension of the firm’s crypto offerings. “This is really just the next step in the evolution of our digital asset platform,” he said, noting the stablecoin fits client needs around payments and settlement.
O’Reilly also tied the timing to new regulation. “It gives a clear regulatory framework for what reserves should look like and how they should be managed. That’s good for the industry and made this the right time for us to bring a product to market.”
Fidelity already provides crypto custody, trading, a retail-facing Fidelity Crypto app, and a crypto IRA product. O’Reilly added that the stablecoin could enable additional on-chain services: “Having a stablecoin within our ecosystem opens the door for other financial services to be built on-chain, by us and others. It becomes a building block for more efficient infrastructure.”
FIDD will compete with bank-issued coins from firms like JPMorgan and Bank of America, as well as large market stablecoins such as Tether and Circle. The firm plans to roll the product out to customers in the coming weeks.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Mempool.space glitch briefly shows LBTC 82.4% backing fixed.
- Robinhood CEO says tokenized stocks can stop future freezes.
- n8n Flaws Let Authenticated Users Achieve Remote RCE Exposed
- Gold Leads Precious Metals Rally; Silver, Platinum Surge Now
- Bitcoin Near $90K, Ethereum $3K as Fed Holds; Jobs Focus Now
