Fidelity Investments to expand digital asset investment lineup with stablecoin launch: Fidelity Digital Dollar (FIDD)

Fidelity is one of the first traditional financial institutions to issue its own digital dollar.

Fidelity Investments® is set to launch its first stablecoin, Fidelity Digital Dollar (FIDD), which „will be issued by Fidelity Digital Assets, National Association, and available for retail and institutional investors in the coming weeks” – according to the press release.

“At Fidelity, we have a long-standing belief in the transformative power of the digital assets ecosystem and have spent years researching and advocating for the benefits of stablecoins,” said Mike O’Reilly, President of Fidelity Digital Assets®. “As a leading asset manager and a digital assets pioneer, Fidelity is uniquely positioned to provide investors with on-chain utility via a digital dollar.”

FIDD will seek to provide investors with a stable digital dollar that combines the benefits of digital assets and blockchain technology with the stability and reliability of the U.S. dollar. FIDD will be backed by the stringent operational standards of Fidelity Digital Assets®, which delivers institutional-grade security and is built upon more than a decade of research and development in the digital assets space. FIDD’s key functions will be supported by Fidelity Investments businesses, offering investors a full-service stablecoin model, including:

Reserve asset management, conducted by Fidelity Management & Research Company LLC, and leveraging Fidelity’s longstanding asset management expertise.

Purchase and redemption options that will permit customers to buy or sell FIDD for $1 on the Fidelity Digital Assets®, Fidelity Crypto®, and Fidelity Crypto® for Wealth Managers platforms. FIDD will also be available for purchase on major exchanges where FIDD is listed, and holders may transfer FIDD to any^[i] Ethereum mainnet address.

Coin issuance, including FIDD’s circulating supply and reserve net asset value, will be disclosed as of the close of every business day on https://www.fidelity.com/.

With the current stablecoin market cap at more than $316 billion^[ii] and a U.S. regulatory framework now in place, Fidelity is one of the first traditional financial institutions to issue its own digital dollar.

“The recent passage of the GENIUS Act was a significant milestone for the industry in providing clear regulatory guardrails for payment stablecoins,” continued O’Reilly. “We’re thrilled to launch a fiat-backed stablecoin at a time of increasing regulatory clarity to better support our customers’ needs, provide choice in the marketplace, and enable continued progress towards a more efficient financial system.”

Simon taylor, commented: „Should banks be worried? Let’s start by looking at what they’re actually building. This is about collateral, not consumers. The CFTC just opened derivatives markets to stablecoin collateral. 24/7 margin settlement is now legal. Fidelity’s OCC charter application lists: „settlement as a service” and „collateral agency services.” That’s not consumer payments. That’s replacing what banks do for corporate treasuries and hedge funds.”

He added: „Banks should worry less about Circle and Tether. Worry about the $6.8 trillion asset manager that now has: national trust bank charter, stablecoin for settlement, tokenized money market fund and collateral agency services. All operating 24/7. No ACH. No banking hours. That’s a completely different market. Maybe not gunning for the consumer. But the clearing side for sure.”

„For the forseeable future, I don’t see Circle or Tether having anything to worry about either. But its clear the institutional opportunity is one they both want. And they’re going to have a tough battle vs Fidelity there.” – Simon Taylor concluded.

Digital Assets at Fidelity Investments

As a firm, Fidelity has been working since 2014 to develop a digital assets ecosystem with infrastructure, products, and services comparable to the solutions it provides for traditional asset classes, including research, trading, custody, and investment products. Fidelity has long been committed to providing choice and offering options to meet the changing needs and interests of customers, accompanied by education and support. To date, Fidelity offers a broad composition of digital assets products and solutions for intermediaries, institutions, and retail investors.

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About Fidelity Investments

Fidelity’s goal is to strengthen the financial well-being of our customers and deliver better outcomes for the clients and businesses we serve. Fidelity’s strength comes from the scale of our diversified, market-leading financial services businesses that serve individuals, families, employers, wealth management firms, and institutions. With assets under administration of $17.5 trillion, including discretionary assets of $6.8 trillion as of September 30, 2025, we focus on meeting the unique needs of a broad and growing customer base. Privately held for 79 years, Fidelity employs more than 78,000 associates across the United States, Ireland, and India.

^[i] Clients will not be able to transfer to addresses that Fidelity Digital Assets® have frozen or restricted on the blockchain, even if they hold FIDD off-platform.

^[ii] CoinMarketCap data as of January 26, 2026.