Companies
Fidelity Launches USD-Backed Stablecoin for Retail and Institutional Clients
Fidelity Investments, one of the largest asset managers globally, has made a significant entry into the stablecoin market with the launch of the Fidelity Digital Dollar (FIDD). This USD-backed stablecoin went live on February 4, 2026, following its announcement on January 28.
Details of the Fidelity Digital Dollar
FIDD is issued by Fidelity Digital Assets, a federally chartered trust bank, ensuring it operates under federal oversight. The stablecoin is built on the Ethereum mainnet, allowing holders to transfer tokens to any Ethereum wallet. The reserves backing FIDD consist of cash, short-term US Treasuries, and related assets, managed by Fidelity Management and Research Company LLC, with BNY Mellon serving as the custodian.
As of recent reports, FIDD has achieved a circulating supply of approximately 62.6 million tokens, equating to a market cap of around $62.6 million. The stablecoin is available for trading on select exchanges, including Bullish and Kraken, in addition to Fidelity's own platforms.
Regulatory Framework and Competition
The launch of FIDD was facilitated by the GENIUS Act, federal legislation passed in the summer of 2025 that established clear guidelines for US stablecoin issuers. Furthermore, Fidelity has introduced the Fidelity Reserves Digital Fund, aimed at providing compliant reserve assets for other stablecoin issuers, positioning itself as a competitor in the reserve management sector.
FAQ
What is the Fidelity Digital Dollar (FIDD)?
The Fidelity Digital Dollar (FIDD) is a USD-backed stablecoin launched by Fidelity Investments on February 4, 2026. It is issued by Fidelity Digital Assets and operates under federal oversight.
How is the Fidelity Digital Dollar backed?
FIDD is backed by reserves consisting of cash, short-term US Treasuries, and related assets, which are managed by Fidelity Management and Research Company LLC.
Where can I trade the Fidelity Digital Dollar?
FIDD is available for trading on select exchanges, including Bullish and Kraken, as well as Fidelity's own trading platforms.
What legislation facilitated the launch of FIDD?
The launch of FIDD was made possible by the GENIUS Act, a federal legislation passed in the summer of 2025 that established clear guidelines for US stablecoin issuers.
What is the Fidelity Reserves Digital Fund?
The Fidelity Reserves Digital Fund is a new initiative by Fidelity aimed at providing compliant reserve assets for other stablecoin issuers, positioning Fidelity as a competitor in the reserve management sector.