idelity Investments has announced the launch of its first stablecoin, the Fidelity Digital Dollar (FIDD). The token, pegged to the U.S. dollar at a 1:1 ratio, will be issued through Fidelity's OCC-approved national trust bank and built on the Ethereum network, marking a major step for one of the world's largest asset managers into the cryptocurrency space.

The announcement comes amid growing institutional interest in stablecoins, which have become a cornerstone of the digital asset ecosystem with a total market capitalization exceeding $300 billion. FIDD is designed to facilitate 24/7 settlements, on-chain payments, and integration with decentralized finance (DeFi) applications, targeting both retail and institutional investors. Eligible customers will be able to buy or redeem FIDD for $1 directly through Fidelity's platforms or on major cryptocurrency exchanges, with the token set to become available in the coming weeks, potentially as early as February.

Backed by a combination of cash, cash equivalents, and short-term U.S. Treasuries, FIDD emphasizes transparency and regulatory compliance. Fidelity plans to provide daily reports on its holdings via its website, supplemented by third-party audits. This approach aligns with the recently enacted GENIUS Act, a federal framework aimed at standardizing payment stablecoins and reducing regulatory uncertainty in the sector.