Fidelity Quietly Launches 'FIDD' Stablecoin on Ethereum
TradFi heavyweight Fidelity has launched FIDD, a new stablecoin on Ethereum. The move follows Fidelity's investment in DeFi protocol Ethena, signaling a pattern of institutional players funding crypto infrastructure before bringing similar products in-house.
The Fidelity Digital Dollar (FIDD) launched on Ethereum with an initial supply exceeding $59 million. The stablecoin is backed by cash and short-term U.S. Treasuries, with Fidelity Management & Research Company managing the reserves. Daily reports on the circulating supply and reserve net asset value will be published on Fidelity's website. This launch follows the GENIUS Act of July 2025, which established a federal regulatory framework for payment stablecoins. FIDD is issued by Fidelity Digital Assets, National Association, a federally chartered trust, positioning it as one of the first major institutional stablecoins under this new legislation. Fidelity's choice of the public Ethereum mainnet is a significant signal of institutional confidence in public blockchains for financial infrastructure, a departure from the private chains some other institutions have favored. FIDD is designed for both 24/7 institutional settlement and retail on-chain payments, aiming to bridge the gap between traditional finance and DeFi. This move is part of a larger trend of tokenizing traditional financial assets, particularly money market funds, to enhance efficiency, security, and settlement speed for institutional investors. Fidelity has been actively involved in the digital asset space since 2014 and also offers products like the Fidelity Digital Interest Token on Ethereum.
