Fidelity Investments said it plans to launch its own U.S. dollar-pegged stablecoin, Fidelity Digital Dollar (FIDD), in one of its largest crypto moves so far. The token is designed to maintain 1:1 backing with cash, cash equivalents, and short-term U.S. Treasuries held and managed internally, and it is set to debut first on the Ethereum network.
Issued by a regulated trust bank subsidiary
According to the report, FIDD will be issued by Fidelity Digital Assets, National Association, a regulated national trust bank subsidiary. Fidelity said the stablecoin will be offered to both institutional and retail users through its own platforms and selected exchanges, giving clients a way to move U.S. dollar value onchain with 24/7 settlement.
The launch is expected in the coming weeks, potentially as early as February. With about $6 trillion in assets under management, Fidelity would rank among the largest traditional financial firms to issue a stablecoin directly rather than relying on third-party issuers.
Reserve design tied to U.S. compliance standards
Fidelity said the structure is intended to align with U.S. compliance requirements, including reserve transparency and anti-money laundering controls. Mike O’Reilly, president of Fidelity Digital Assets, said stablecoins are taking on a larger role in digital asset markets because they support continuous liquidity and lower-cost settlement.
He described the launch as a response to rising client demand for blockchain-based payment and trading infrastructure. That move puts Fidelity into direct competition with major stablecoin issuers such as Tether and Circle, which currently dominate the sector.
Entry comes as stablecoin supply reaches about $308 billion
The report estimates global stablecoin supply at roughly $308 billion. Dollar-linked tokens are already widely used in trading, DeFi, and cross-border transfers. Fidelity’s latest step builds on its earlier digital asset work, including early bitcoin mining activity, institutional custody services launched in 2018, and spot crypto ETF offerings.
It also follows prior testing around stablecoin-related products and filings connected to tokenized money market funds. The announcement adds to a broader shift in which large asset managers are examining blockchain rails for payments, settlement, and asset tokenization.