Fidelity Launches Stablecoin FIDD

Fidelity Digital Assets has officially launched its stablecoin, the Fidelity Digital Dollar (FIDD), on February 4. This new digital asset is aimed at both institutional and retail clients.

Fidelity Digital Assets announced, “We are excited to introduce Fidelity Digital Dollar (FIDD), a new stablecoin issued by Fidelity Digital Assets, NA and pegged 1:1 to the U.S. dollar.”

FIDD operates on the Ethereum blockchain and is anticipated to be available on major cryptocurrency exchanges shortly. Users will be able to acquire and utilize the stablecoin through Fidelity’s various platforms, including Fidelity Digital Assets and Fidelity Crypto.

Fidelity Management & Research Company LLC will oversee the reserves, which are entirely backed by U.S. dollars. Monthly audits will be performed by PricewaterhouseCoopers LLP to ensure transparency and accountability.

As of the latest data from CoinGecko, FIDD's market cap stands at approximately $59 million, with a daily trading volume exceeding $60 million.

This launch coincides with evolving regulatory frameworks in the U.S., particularly following the passage of the Genius Act, which has enabled more crypto firms to operate within the country. Mike O'Reilly, president of Fidelity Digital Assets, highlighted the significance of this legislation, stating it provides essential regulatory clarity for payment stablecoins.

Additionally, it is notable that Tether introduced a federally regulated stablecoin, USAT, earlier in January.