Fidelity to launch dollar-backed stablecoin FIDD on Ethereum in coming weeks

Fidelity Investments is set to launch its first stablecoin, the Fidelity Digital Dollar (FIDD), on the Ethereum blockchain in the coming weeks, marking its entry into onchain payments and settlement. Issued by Fidelity Digital Assets’ national trust bank, FIDD will be redeemable one-to-one for U.S. dollars via Fidelity platforms and transferable across the Ethereum mainnet. Fidelity will manage the issuance and reserve assets through its asset management arm. Mike O’Reilly, president of Fidelity Digital Assets, stated the launch is supported by the firm's belief in stablecoins and the recent regulatory clarity provided by the passage of the GENIUS Act, which established a federal framework for payment stablecoins. This move occurs as the stablecoin market grows and other major banks explore similar digital assets, despite ongoing legislative debates in Washington regarding broader crypto regulation and concerns from traditional banks about potential deposit drains.

(Source：The Block)