Fidelity to Debut GENIUS-Compliant Stablecoin FIDD on Ethereum

• Fidelity launches dollar-backed FIDD stablecoin on Ethereum under U.S. federal rules.
• FIDD complies with GENIUS Act, holding cash and Treasuries with daily disclosures.
• Ethereum launch enables 24/7 settlement and broad transfers across Fidelity platforms.

Fidelity Investments will launch a dollar-backed stablecoin on Ethereum. The token, called Fidelity Digital Dollar (FIDD), will be issued by Fidelity Digital Assets. The launch follows recent regulatory approval and reflects rising demand for regulated, blockchain-based payment instruments.

Fidelity’s Stablecoin Debut Under the GENIUS Act

The stablecoin will be issued by Fidelity Digital Assets, National Association, a federally chartered national trust bank. The Office of the Comptroller of the Currency granted the entity conditional approval on Dec. 12, 2025. That approval allowed Fidelity to proceed after meeting additional regulatory requirements.

Fidelity said FIDD will comply with the GENIUS Act, signed into law in July 2025. The legislation established federal standards for payment stablecoins in the United States. Notably, the law defines eligible reserves, disclosure obligations, and operational safeguards.

Fidelity confirmed that FIDD reserves will include cash, cash equivalents, and short-term U.S. Treasuries. Fidelity Management & Research will oversee reserve management. Daily disclosures will report circulating supply and reserve net asset value on Fidelity’s website.

Mike O’Reilly, president of Fidelity Digital Assets, said regulatory clarity influenced the timing. According to O’Reilly, the GENIUS Act provided clear guardrails for issuing a fiat-backed stablecoin. That framework enabled Fidelity to move forward with a compliant product.

Ethereum Launch and Platform Availability

Fidelity will issue FIDD on the Ethereum blockchain, the leading network for stablecoin activity. Ethereum currently hosts more than half of all stablecoins in circulation, according to RWA.xyz. Fidelity said Ethereum’s infrastructure supports broad interoperability and settlement efficiency.

FIDD will be redeemable at a one-to-one ratio for U.S. dollars. Users will access the stablecoin through Fidelity Digital Assets, Fidelity Crypto, and Fidelity Crypto for Wealth Managers. The company also plans to list FIDD on major crypto exchanges.

Notably, Fidelity said users can transfer FIDD to any Ethereum mainnet address. This design allows use across decentralized finance protocols and blockchain-based applications. However, Fidelity did not announce integrations with specific DeFi platforms.

The firm expects FIDD to support around-the-clock settlement for institutional traders. Retail users may also use the token for on-chain payments. According to Fidelity, these use cases align with existing client demand for faster settlement options.

Fidelity stated that it may consider additional blockchains or layer-two networks later. However, the initial launch will remain limited to Ethereum. The company did not provide a timeline for potential network expansion.

Related: US Stablecoin Yield Ban Raises Dollar Competitiveness Fears

Stablecoin Market Context and Competitive Sector

Fidelity is stepping into a huge stablecoin market worth roughly $296 to $316 billion. In 2025 alone, stablecoins handled about $33 trillion in transactions, with January seeing monthly transfers hit $9.67 trillion, showing how fast the space is growing.

Tether’s USDT dominates the market with close to a 60% share and more than $177 billion in circulation. Circle’s USDC comes next, with a market value of around $70 billion.

However, regulatory developments have shifted issuer strategies. Tether launched a U.S.-compliant stablecoin, USA₮, earlier this week. 

That launch came shortly before Fidelity’s announcement and after the GENIUS Act took effect. Other firms have also entered the sector. PayPal and Ripple launched stablecoins in 2023 and 2024, respectively. Despite their launches, both remain far smaller than Tether and Circle by market capitalization.

Fidelity acknowledged the crowded market but emphasized client demand. The firm serves more than 50 million customers and manages over $15 trillion in assets. Its stablecoin development plans first surfaced publicly in March 2025.

Fidelity’s Broader Digital Asset Strategy

Fidelity has pursued digital asset initiatives since 2014. Its offerings include crypto custody, trading services, and a retail-focused Fidelity Crypto app. In 2025, the firm also introduced a crypto IRA product.

O’Reilly said FIDD fits within Fidelity’s existing digital asset platform. According to him, a native stablecoin supports low-cost payments and real-time settlement. Fidelity described the stablecoin as a foundational tool within its ecosystem.

The company confirmed that FIDD will become available in early February. Access will expand gradually across Fidelity’s platforms and external exchanges. Fidelity did not disclose an initial issuance size.

Fidelity Investments’ FIDD launch places a major asset manager into the regulated stablecoin market. The Ethereum-based token will operate under GENIUS Act standards with disclosed reserves. The rollout connects regulatory approval, platform expansion and rising stablecoin adoption into a single product strategy.