Fidelity Investments is set to launch its first stablecoin, the Fidelity Digital Dollar (FIDD), in early February 2026. The Ethereum-based token will be issued by Fidelity Digital Assets, a federally chartered national bank, and is redeemable at a 1:1 ratio for U.S. dollars on Fidelity's crypto trading platforms—Fidelity Digital Assets, Fidelity Crypto, and Fidelity Crypto for Wealth Managers—as well as on major external exchanges, according to a press release.
The company designed FIDD to meet growing client demand for low-cost payments and 24/7 settlement. Mike O'Reilly, president of Fidelity Digital Assets, said in an interview: “Offering a fiat-backed stablecoin fits naturally into what our clients are asking for, especially around low-cost payments and settlement.”
Reserves Compliant with GENIUS Act, Daily Disclosures
FIDD's reserves will consist of cash, cash equivalents, and short-term U.S. Treasuries, aligned with the recently enacted GENIUS Act, which sets federal standards for payment stablecoins. O'Reilly noted that the law provides a clear regulatory framework for reserve composition and management, making “this the right time for us to bring a product to market.”
Fidelity will disclose the coin's issuance and reserve values daily on its website, along with regular third-party attestations. Reserve management will be handled by in-house investment advisor Fidelity Management & Research. While FIDD launches solely on Ethereum, the firm may explore additional blockchains or layer-2 networks in the future.
Competing with USDT/USDC Amid Tether's U.S. Move
Fidelity's entry pits it directly against incumbents Circle (USDC) and Tether (USDT), which together dominate the over $308 billion stablecoin market. Tether also announced this week the launch of USAT, a dollar-backed token targeting the U.S. market. O'Reilly said the stablecoin positions Fidelity to support broader onchain products: “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.”