Fidelity Investments has entered the stablecoin market with the launch of the Fidelity Digital Dollar (FIDD), a token pegged 1:1 to the U.S. dollar and available to both retail and institutional investors through Fidelity Digital Assets. The stablecoin features reserves managed by Fidelity Management & Research Company LLC, with daily disclosure of circulating supply and reserve net asset values.
FIDD can be purchased and redeemed on Fidelity’s platforms at $1 per token and transferred to Ethereum mainnet addresses. Mike O’Reilly, President of Fidelity Digital Assets, said the firm is “uniquely positioned to provide investors with on-chain utility via a digital dollar.” The launch expands Fidelity’s growing digital asset offerings, which already include Fidelity Crypto and Fidelity Crypto for Wealth Managers.