Global asset management giant Fidelity Investments announced that it will launch its first US dollar stablecoin, "Fidelity Digital Dollar (FIDD)," in the coming weeks. FIDD will be one of the few payment-type stablecoins directly issued by a large traditional financial institution and fully compliant with the US federal regulatory framework. This signifies a major step by traditional finance into the field of on-chain payments and settlements, bringing a more intense competitive landscape to the stablecoin market.
Fidelity's first stablecoin, FIDD, is coming soon.
According to the official press release , FIDD will be issued by National Trust Bank, a federally regulated subsidiary of Fidelity Digital Assets, and deployed on the Ethereum mainnet.
The stablecoin will be pegged to the US dollar at a 1:1 ratio. Users can mint and redeem it through platforms such as Fidelity Digital Assets, Fidelity Crypto, and Fidelity Wealth Management. It can also be transferred to any Ethereum mainnet address and is planned to be listed on major cryptocurrency exchanges.
Mike O'Reilly, President of Fidelity Digital Assets, said, "This is just the next step in the evolution of our digital asset platform. FIDD is designed primarily to target application scenarios such as 24/7 institutional settlement and on-chain payments for general users, which will also lay the foundation for more blockchain financial products in the future."
Regulation becomes a key driving force: The GENIUS Act provides a clear framework
Fidelity points out that the official launch of FIDD is closely related to the GENIUS Act passed by the United States last year. This act, for the first time, clearly regulates the reserve asset structure of payment-type stablecoins at the federal level, requiring it to consist of cash, cash equivalents, and short-term U.S. Treasury securities, and establishing information disclosure and third-party verification mechanisms.
As required, Fidelity will disclose the circulation and reserve size of FIDD on its official website daily and publish third-party verification reports regularly; the relevant reserve assets will be managed by its asset management division, Fidelity Asset Management and Research.
The stablecoin competition landscape is shifting, putting pressure on Circle and Tether.
Fidelity's entry signifies that this Wall Street financial giant will directly compete for market share with the major current stablecoin issuers, including Circle's USDC and Tether's USDT. Currently, the total global stablecoin market capitalization exceeds $300 billion, with USDT still holding approximately 60% of the share.
Market analysis suggests that Fidelity, with its long-standing institutional client base, compliance system, and asset management capabilities, may have a competitive advantage in institutional settlement and compliance-oriented application scenarios, and will introduce more traditional financial participants to the stablecoin market.
The race for on-chain dollars intensifies, putting pressure on the banking system.
While stablecoins are experiencing rapid growth, several banks have expressed concerns about their potential impact. Multiple US banking groups have repeatedly warned that widespread use of stablecoins for payments and fund berthing could divert deposits from traditional banks. Meanwhile, several large banks in the US and Europe have stated they are exploring the launch of on-chain payment assets backed 1:1 by fiat currency.
With regulations becoming clearer, Fidelity's launch of FIDD is seen as an important signal that traditional finance is accelerating the integration of blockchain infrastructure, and "on-chain dollars" are gradually becoming a new battleground in the financial market.
This article, titled "Fidelity to Issue Its Own Stablecoin FIDD on Ethereum, Locking Up Institutional Settlements and User Payments," first appeared on ABMedia, a ABMedia .
