Fidelity readies digital dollar stablecoin launch

Fidelity Investments plans to launch a US dollar stablecoin next month through its newly approved national trust bank, signalling deeper institutional adoption of blockchain-based payments.

The asset manager said the Fidelity Digital Dollar will be issued by Fidelity Digital Assets, National Association, following regulatory approval from the Office of the Comptroller of the Currency in December.

“Stablecoins could serve as foundational payment and settlement services,”

Said Fidelity Digital Assets president Mike O’Reilly, citing real-time settlement and round-the-clock availability.

The planned stablecoin is expected to align with the GENIUS Act, which sets federal standards for payment stablecoins covering reserve backing, issuer oversight and consumer protections.

Fidelity, which manages nearly $6 trillion in assets, has been an early mover in digital assets, including launching one of the first US spot Bitcoin exchange-traded funds with about $17.4 billion in assets.

Regulatory clarity under the GENIUS Act has also prompted banks such as JPMorgan Chase, Citigroup and Bank of America to explore issuing their own dollar-backed stablecoins.

Incumbent issuers are positioning for expanded US offerings as well, with Tether planning a regulated dollar stablecoin via Anchorage Digital and Circle recently launching a privacy-focused version of USDC.