$6 trillion asset manager Fidelity Investments says it plans to launch its own crypto stablecoin. Following in the footsteps of JPMorgan, Bank of America, and other top institutions, Fidelity is working on the Fidelity Digital Dollar (FIDD). The move is a sign that the asset manager is looking to further embrace the digital asset industry and support its customers looking to invest beyond fiat.
Per a Bloomberg report, Fidelity plans to launch the FIDD stablecoin on Ethereum. FIDD will be issued by Fidelity Digital Assets, National Association, a national trust bank that received conditional approval to operate from the US Office of the Comptroller of the Currency in December. Additionally, the Fidelity stablecoin will be backed by reserves of cash, cash equivalents, and short-term U.S. Treasuries managed by Fidelity, in line with the new federal GENIUS Act’s standards for payment stablecoins.
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Fidelity FIDD: More Competition in Stablecoin Market
The Fidelity Digital Dollar stablecoin will be a direct competitor not just to JPM and BofA’s coins, but big players like Tether (USDT) and Circle (CRCL). Fidelity already has plenty of digital asset offerings, including crypto custody, trading, a retail-facing Fidelity Crypto app, and a crypto IRA product introduced last year.
“This is really just the next step in the evolution of our digital asset platform,” said Mike O’Reilly, president of Fidelity Digital Assets, in a recent interview. “The ability to offer a fiat-backed stablecoin fits naturally into what our clients are asking for—especially around low-cost payments and settlement.”
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Furthermore, the Fidelity President confirmed that the approved GENIUS Act was a key enabler for the launch. “It gives a clear regulatory framework for what reserves should look like and how they should be managed. That’s good for the industry and made this the right time for us to bring a product to market.” O’Reilly also said the new stablecoin also positions Fidelity to support a broader range of onchain products down the line, hinting at more digital assets-oriented projects in the future. “Having a stablecoin within our ecosystem opens the door for other financial services to be built on-chain, by us and others. It becomes a building block for more efficient infrastructure,” he said.
The approval of the GENIUS crypto act by the US Government was a turning point for not just crypto companies and the industry, but for institutional interest in digital assets. Fidelity will now be the latest big US firm to offer a digital asset for its customers in the coming weeks.