Fidelity Launches Ethereum-Based Stablecoin FIDD

Fidelity Investments has announced the launch of its new stablecoin, the Fidelity Digital Dollar (FIDD), which is based on the Ethereum blockchain. The stablecoin is issued by Fidelity Digital Assets, a federally chartered national bank, and is backed by reserves consisting of cash, cash equivalents, and short-term U.S. Treasury securities, in compliance with the GENIUS Act. FIDD supports 24/7 institutional settlements and on-chain retail payments, with a 1:1 redemption for U.S. dollars on the Fidelity platform.

Fidelity will provide daily disclosures of the FIDD issuance and reserves, along with regular third-party audits to ensure transparency and trust. This move marks a significant step in Fidelity’s expansion into digital assets, offering enhanced settlement capabilities and payment options for institutional and retail clients.