Fidelity launches Fidelity Digital Dollar (FIDD) Stablecoin on Ethereum

• Asset manager Fidelity has issued a US dollar-denominated stablecoin called Fidelity Digital Dollar (FIDD) onto the Ethereum blockchain

• The issuance follows the granting to Fidelity of a conditional trust bank licence by the Office of the Comptroller of the Currency (OCC)

• FIDD circumvents GENIUS Act restrictions on paying interest to Stablecoin holders by integrating FIDD with a tokenised money market fund

Fidelity Investments has launched a US dollar-denominated Stablecoin, the Fidelity Digital Dollar (FIDD), on Ethereum.

The issuer is Fidelity Digital Assets, National Association, the trust bank set up by the asset manager following conditional approval of a national trust bank licence from the Office of the Comptroller of the Currency (OCC) on 12 December 2025.

FIDD can be bought and sold for US $1 on the Fidelity Digital Assets, Fidelity Crypto, and Fidelity Crypto for Wealth Managers platforms.

The trading and custody available via Fidelity Crypto and Fidelity Crypto for Wealth Managers are provided by the national trust bank.  FIDD is also available for purchase on the Bullish, Kraken and WEEX cryptocurrency exchanges.

“At Fidelity, we have a long-standing belief in the transformative power of the digital assets ecosystem and have spent years researching and advocating for the benefits of stablecoins,” says Mike O’Reilly, President of Fidelity Digital Assets. “As a leading asset manager and a digital assets pioneer, Fidelity is uniquely positioned to provide investors with on-chain utility via a digital dollar.”

Fidelity was certainly among the first traditional asset managers to engage with digital assets, researching cryptocurrencies and even purchasing the computing power to mine Bitcoin as early as 2014.

In 2018, Fidelity established a dedicated business unit, Fidelity Digital Assets, to provide cryptocurrency trading and custody services to clients.

FIDD provides an example of how the asset manager is using digital assets to grow its core business.  The reserves that back the Stablecoin are managed by Fidelity Management & Research Company LLC, the traditional asset management arm, using the tokenised Fidelity Treasury Digital Fund (FYHXX) money market fund that the firm issued on to Ethereum in September 2025.

This enables the firm to mint FIDD for subscribers by buying treasury debt securities and money market instruments and redeems FIDD by buying shares in the money market fund. By enabling FIDD users to switch to the FYHXX tokenised money market fund, Fidelity is also able to offer yield to customers on-chain.

By operating the Stablecoin in close conjunction with a tokenised money market fund issued on to the same blockchain protocol, Fidelity neatly sidesteps the Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025 (GENIUS Act) restriction on Stablecoins competing with bank deposits by paying interest.

“The recent passage of the GENIUS Act was a significant milestone for the industry in providing clear regulatory guardrails for payment Stablecoins,” adds O’Reilly. “We are thrilled to launch a fiat-backed Stablecoin at a time of increasing regulatory clarity to better support our customers’ needs, provide choice in the marketplace, and enable continued progress towards a more efficient financial system.”

Fidelity has also opted for maximum transparency, disclosing the FIDDs in circulation and the reserves that back FIDD on a daily basis on its website.

Fidelity currently has assets under management of US$17.5 trillion, of which US$6.8 trillion are in in-house rather than third-party funds.