Fidelity Launches FIDD Stablecoin on Ethereum in Early February 2026

Fidelity enters the stablecoin market

Fidelity Investments plans a new U.S. dollar stablecoin called Fidelity Digital Dollar (FIDD). A stablecoin is a crypto token that tracks a reference asset, usually one unit of government money such as one U.S. dollar.

FIDD launches in early February 2026 after a public announcement on 27 and 28 January 2026. Fidelity positions the token inside its existing digital asset business rather than in a separate startup structure.

Issuer, bank charter, and reserves

FIDD is issued by Fidelity Digital Assets, National Association, a national trust bank. The Office of the Comptroller of the Currency (OCC), a U.S. banking supervisor, granted conditional approval for this entity on 12 December 2025.

Each FIDD token targets a one‑to‑one value with the U.S. dollar. Reserves consist of cash, cash equivalents, and short‑term U.S. Treasury securities, managed by Fidelity Management & Research Company LLC, an investment arm with trillions of dollars under management.

Regulation under the GENIUS Act

FIDD operates under the GENIUS Act, the U.S. federal stablecoin law signed on 18 July 2025 by President Donald Trump. The law sets nationwide rules for issuing dollar‑backed tokens.

The framework requires 100% reserve backing, clear segregation of client assets, and regular reporting. FIDD commits to daily public figures on tokens in circulation and backing assets, plus independent attestations from external auditors at defined intervals.

Ethereum infrastructure and access channels

FIDD runs on the Ethereum blockchain, a public network where users send transactions and deploy smart contracts, which are programs that execute rules on the chain. Tokens move between standard Ethereum addresses in the same way as other ERC‑20 tokens.

Investors obtain and redeem FIDD through Fidelity Digital Assets, Fidelity Crypto, and Fidelity Crypto for Wealth Managers. Exchanges list the token for trading, and any wallet that supports Ethereum receives or sends FIDD once addresses and fees are configured correctly.

Real-time settlement, 24/7, low-cost treasury management, are all meaningful benefits that stablecoins can bring to both our retail and our institutional clients., 28 January 2026. — Mike O'Reilly, President, Fidelity Digital Assets

Stablecoin competition and market size

The stablecoin market reached around 310 billion U.S. dollars in early 2026, with Tether (USDT) and USD Coin (USDC) holding most of the value. USDT holds around 186 to 187 billion dollars, while USDC ranges near 73 to 76 billion dollars.

FIDD enters this environment as an institution‑backed token from a large asset manager. The design focuses on regulated reserves, daily transparency, and integration with existing institutional settlement and custody systems rather than on speculative trading features.