Fidelity Digital Assets is launching the GENIUS Act-compliant FIDD stablecoin on Ethereum, fully backed by USD and US Treasury bills, aimed at facilitating institutional payments and clearing.
Fidelity Digital Assets, the crypto asset unit of a leading US asset management firm, has officially launched its native stablecoin FIDD on the Ethereum blockchain with an initial supply exceeding $59 million. This move marksFidelity 's entry into the rapidly growing stablecoin market, following its announcement of its intention to enter the sector last week.
Mike O'Reilly, President of Fidelity Digital Assets, emphasized the company's long-standing belief in the transformative power of the crypto ecosystem and its years of research and advocacy for the benefits of stablecoins. As a leading asset manager and pioneer in crypto assets, Fidelity is uniquely positioned to provide investors with on- chain utility through a digital USD.
FIDD is designed to comply with the US GENIUS Act, fully backed by USD at accredited banks. Fidelity will provide custody services for FIDD along with reserve management. Purchases and exchanges are conducted through Fidelity Digital Assets, Fidelity Crypto, and Fidelity Crypto for Wealth Managers. The Token will also be available on major exchanges and fully transferable across Ethereum wallets.
Take advantage of the GENIUS Act
The deployment of stablecoins offers a “double impact” for issuers. First, they have a controllable source of liquidation to use within the crypto asset ecosystem. Second, because the GENIUS Act allows backing by US Treasury bills, issuers can retain the profits from holding Treasury bonds at high interest rates. Most stablecoin issuers keep the interest to themselves and rarely Chia this profit with Token holders.
FIDD will be used for on- chain payments as well as institutional clearing. The Token can be redeemed for USD by the issuer and has the potential to be integrated into other on-chain products. Capital has experience in structuring crypto assets and is the only ETF issuer offering exclusive custody services.
However, the launch of stablecoins doesn't guarantee immediate liquidation . Fidelity still needs to ensure usage levels, given that some of the new stablecoins are idle or have minimal supply. Banks, fintech apps, crypto-native companies, and asset managers are competing for market share in the stablecoin market, which has reached record supply levels, although much of the growth still comes from USDT and USDC.
Fidelity has experience with Ethereum as a Tokenize platform. The Fidelity Digital Interest Token currently holds over $161 million in assets under management since its launch in September 2025, having peaked at over $264 million before declining by approximately 32% in the past month due to exchange activity.
