Fidelity Investments has officially entered the stablecoin market with the launch of the Fidelity Digital Dollar (FIDD), a token pegged one-to-one to the US dollar and backed by reserves. The stablecoin will be available to both retail and institutional clients in the coming weeks, according to Bloomberg.
FIDD will operate on the Ethereum network, allowing transfers to any ETH address and integration with compatible DeFi protocols.
The stablecoin will be issued by Fidelity Digital Assets, National Association, a national trust bank that received conditional approval from the US Office of the Comptroller of the Currency in December. Mike O’Reilly, president of Fidelity Digital Assets, said that stablecoins could serve as foundational payment and settlement tools, offering benefits such as real-time settlement, 24/7 availability, and low-cost treasury management.
FIDD’s reserves will consist of cash, cash equivalents, and short-term US Treasuries, in line with the GENIUS Act. The company is entering a competitive market dominated by Tether and Circle, which together control 82 percent of the stablecoin market. Other competitors include PayPal and Ripple, which have launched stablecoins but hold minimal market share. Tether recently introduced a US-compliant version called USA₮.
Ethereum continues to lead in stablecoin deployment with a 56 percent market share. Tron follows with 28 percent, while Solana accounts for just under five percent. The total stablecoin market is valued at $312 billion, or about 10 percent of the crypto market, with Tether’s USDT holding a 60 percent share at $186 billion in circulation.
Although Fidelity is unlikely to challenge the largest stablecoins, its FIDD offering will primarily serve institutional clients. The firm manages over $15 trillion in assets and serves more than 50 million customers.
