Fidelity Investments Starts its own stablecoin in a massive bet that future of banking is on blockchain

Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Fidelity Investments Starts its own stablecoin in a massive bet that future of banking is on blockchain The FIDD token will run on Ethereum, serve institutional and retail users, and comply with the new GENIUS Act’s reserve rules. By Helene Braun | Edited by Aoyon Ashraf Jan 28, 2026, 1:30 p.m. Make us preferred on Google What to know : Fidelity Investments is launching its first stablecoin, the Fidelity Digital Dollar (FIDD), based on the Ethereum network. FIDD will be backed by reserves of cash, cash equivalents, and short-term U.S. Treasuries managed by Fidelity, in line with the new federal GENIUS Act's standards for payment stablecoins. The stablecoin targets use cases such as 24/7 institutional settlement and onchain retail payments, putting Fidelity in direct competition with dominant issuers like Circle’s USDC and Tether’s USDT while laying groundwork for future onchain financial products. Fidelity Investments is launching its first stablecoin, the Fidelity Digital Dollar (FIDD), in early February, marking a major move by one of the largest traditional financial institutions into onchain finance. FIDD will be issued by Fidelity Digital Assets, a federally chartered national bank and subsidiary of Fidelity. The Ethereum-based stablecoin will be redeemable for $1 on Fidelity’s crypto trading platforms — Fidelity Digital Assets, Fidelity Crypto, and Fidelity Crypto for Wealth Managers — and will also be made available on major crypto exchanges, according to a press release. STORY CONTINUES BELOW Don't miss another story. Subscribe to the Crypto Daybook Americas Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms & conditions and privacy policy . The company says it designed the product to meet growing client demand and to expand the utility of blockchain-based financial products. “This is really just the next step in the evolution of our digital asset platform,” said Mike O’Reilly, president of Fidelity Digital Assets, in an interview. “The ability to offer a fiat-backed stablecoin fits naturally into what our clients are asking for—especially around low-cost payments and settlement.” FIDD is designed for use cases such as 24/7 settlement for institutional traders and on-chain payments for retail users. It can also be transferred to any Ethereum mainnet address, enabling broader use across decentralized finance (DeFi) protocols and blockchain-based platforms. The 'right time' The company confirmed that the reserves will consist of cash, cash equivalents, and short-term U.S. Treasuries, consistent with the requirements set out in the recently passed GENIUS Act , a federal law that established clear standards for payment stablecoins. The GENIUS Act was a key enabler for the launch, O’Reilly said. “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.” Coin issuance and reserve values will be disclosed daily on Fidelity’s website, and the company will also publish regular third-party attestations verifying the reserves. Fidelity will manage the coin’s reserves through its in-house investment advisor, Fidelity Management & Research. FIDD will initially launch on Ethereum, but Fidelity said it may explore expanding to additional blockchains or layer-2 networks in the future. A new competitor Fidelity’s entrance into the stablecoin market puts it in direct competition with crypto-native issuers such as Circle (USDC) and Tether USDT $ 0.9989 , which together dominate a market now worth over $308 billion. T ether unveiled on Tuesday that it is making its move into the U.S. market with the launch of USAT, a dollar-backed token O’Reilly said the new stablecoin also positions Fidelity to support a broader range of onchain products down the line. “Having a stablecoin within our ecosystem opens the door for other financial services to be built onchain, by us and others. It becomes a building block for more efficient infrastructure,” he said. The launch adds to Fidelity’s growing list of digital asset offerings, which include crypto custody, trading, a retail-facing Fidelity Crypto app, and a crypto IRA product introduced last year. 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