Fidelity Investments on Wednesday launched its first stablecoin, the Fidelity Digital Dollar, marking the firm’s entry into the US dollar-pegged crypto market.
The token, known as FIDD, is issued by Fidelity Digital Assets and deployed on the Ethereum blockchain with a one-to-one peg to the US dollar.
Fidelity said the stablecoin is backed by reserves including cash, US Treasury bills and repurchase agreements, and is available to retail and institutional users via its platforms and selected crypto exchanges.
The launch expands Fidelity’s digital asset offering beyond custody, trading and exchange-traded products as the firm oversees more than $12 trillion in assets under administration.
Fidelity said FIDD is designed for on-chain payments, settlements and use as a digital cash equivalent within blockchain-based financial products, with issuance expected to scale based on demand.
The move follows years of blockchain experimentation by Fidelity, which began exploring the technology in 2014 and established its digital asset business in 2018.
Market observers say Fidelity’s regulatory positioning could appeal to risk-averse users, though adoption will depend on liquidity, exchange support and interoperability with existing stablecoins.