Key facts
- Fidelity Investments launched its first stablecoin, the Fidelity Digital Dollar (FIDD).
- FIDD is backed by cash, U.S. Treasuries, and other highly liquid assets.
- The stablecoin is redeemable one-to-one for U.S. dollars.
- Fidelity's fund invests in U.S. Treasury securities with maturities of 93 days or less.
- Fidelity joins BlackRock, State Street, Goldman Sachs, and BNY in the stablecoin reserve management market.
Fidelity Investments has launched its first stablecoin, the Fidelity Digital Dollar (FIDD), marking a significant entry by a traditional asset manager into the onchain payments and settlement space. The token, issued by Fidelity Digital Assets, is designed to offer a regulated alternative in the growing stablecoin market, which has a total value exceeding $316 billion.
FIDD is fully backed by cash, U.S. Treasuries, and other highly liquid assets held in custody accounts at Bank of New York Mellon. The stablecoin will be redeemable one-to-one for U.S. dollars across Fidelity’s digital asset platforms and supports transfers on the Ethereum mainnet. Fidelity plans to disclose circulating supply and reserve net asset value daily, with monthly reserve reports examined by PricewaterhouseCoopers.
Fidelity's move positions it as the fifth money fund manager to launch a Stablecoin Reserves money market fund, following similar offerings from BlackRock, State Street, Goldman Sachs, and BNY. The company's 'Fidelity Reserves Digital Fund' invests primarily in U.S. Treasury bills, notes, and bonds with remaining maturities of 93 days or less, cash, and overnight repurchase agreements fully collateralized by U.S. Treasury securities. It also invests in eligible reserve assets permitted under the 'GENIUS Act'.
Mike O’Reilly, president of Fidelity Digital Assets, emphasized that stablecoins are a foundational component of the digital assets ecosystem and that Fidelity is uniquely positioned to offer a digital dollar backed by institutional-grade infrastructure and risk controls. The firm noted that the recent passage of the GENIUS Act provided clear regulatory guardrails for payment stablecoins, creating favorable conditions for a U.S.-based asset manager to issue its own digital dollar.