Fidelity will launch the US dollar stablecoin "FIDD," venturing into on-chain payments and settlement.

Fidelity Investments, with an asset management scale of $5.9 trillion, announced on Wednesday that it will launch its first stablecoin — the “Fidelity Digital Dollar (FIDD)” — in the coming weeks. As U.S. regulations on stablecoins gradually take shape, this leading global asset management firm is officially entering the on-chain payment and settlement space. According to a statement released by Fidelity, FIDD will be issued by Fidelity Digital Assets’ subsidiary, National Trust Bank, and will initially be open to both retail and institutional clients. The stablecoin will be issued on Ethereum and can be exchanged for USD at a 1:1 ratio through the Fidelity platform. Fidelity will be responsible for the issuance and reserve management of the stablecoin, relying on its subsidiary, Fidelity Management & Research Company LLC, to handle reserve assets. Clients will be able to buy or exchange FIDD at a price of $1 through Fidelity Digital Assets, Fidelity Crypto, and Fidelity Crypto for Wealth Managers. The stablecoin can also be transferred to any Ethereum wallet address and will be listed on mainstream cryptocurrency exchanges in the future. Mike O’Reilly, President of Fidelity Digital Assets, stated, “Fidelity has always believed in the transformative power of the digital asset ecosystem and has dedicated years to researching and promoting the advantages of stablecoins.” He added that the company believes stablecoins can provide on-chain practical functions supported by institutional-grade security for investors. Fidelity began building digital asset infrastructure as early as 2014 and officially established Fidelity Digital Assets in 2019, becoming one of the first traditional financial giants to enter the space. The debut of FIDD comes at a time when the global stablecoin market is rapidly expanding. According to statistics, the total supply of stablecoins worldwide has approached $300 billion, and U.S. regulatory frameworks are gradually taking shape. Fidelity specifically mentioned that the U.S. stablecoin regulation bill passed last year, the “GENIUS Act,” is a key factor in driving the implementation of FIDD.