$6T Fidelity to Launch New Stablecoin on Ethereum

Fidelity Investments is entering the stablecoin space with the upcoming launch of the Fidelity Digital Dollar (FIDD) on Ethereum.

The company plans to release the token in early February, representing a major move by one of the world’s largest asset managers into blockchain financial services. The stablecoin market has already grown beyond $308 billion, and Fidelity now plans to secure its place in the growing sector.

The decision follows new regulatory clarity under the GENIUS Act, which sets reserve standards for stablecoins, and positions Fidelity in direct competition with dominant issuers like Circle and Tether in a market now worth over $308 billion. 

Key Points

• Fidelity will issue FIDD in early February on Ethereum, with one-to-one dollar redemption across its crypto platforms and major exchanges.
• FIDD targets 24/7 institutional settlement and everyday onchain payments for retail users across DeFi ecosystems.
• The stablecoin market has surpassed $308 billion, dominated by USDC and USDT, with Tether also launching a new U.S.-focused token called USAT.
• Major U.S. banks, including JPMorgan Chase, Bank of America, Citibank, and Wells Fargo, have launched or piloted stablecoin projects since 2025.
• Global banks such as Société Générale, Standard Chartered, ANZ Bank, and a European consortium plan or operate stablecoins.

Designed for Fast Payments and Continuous Settlement

Notably, Fidelity Digital Assets, Fidelity’s federally chartered national bank subsidiary, will issue FIDD on the Ethereum blockchain. 

Users will be able to exchange the token one-to-one for U.S. dollars through Fidelity Digital Assets, the Fidelity Crypto app, and Fidelity Crypto for Wealth Managers. Fidelity also intends to list the stablecoin on major crypto exchanges to broaden access. Fidelity built FIDD to support everyday payments and high-volume institutional settlement. 

Mike O’Reilly, president of Fidelity Digital Assets, explained that the stablecoin naturally expands the company’s digital asset offerings. He noted that clients increasingly want faster, cheaper, and more efficient blockchain-based payment tools, making a dollar-backed token a logical plan.

Regulatory Clarity

The recently passed GENIUS Act created the legal foundation for Fidelity’s launch by setting clear rules for stablecoin reserves. The law requires issuers to back tokens with cash, cash equivalents, and short-term U.S. Treasury securities, and Fidelity structured FIDD to meet those standards.

Fidelity will post daily reserve figures and token supply updates on its website and publish regular third-party audits to confirm full backing. 

Fidelity Management & Research will manage the reserves internally. While Ethereum will become the starting point, the company has already said it may expand FIDD to other blockchains or layer-two networks in the future.

Challenging an Industry Dominated by Crypto Firms

Fidelity now competes directly with long-established stablecoin issuers such as Circle, which runs USDC, and Tether, which issues USDT. Together, these two companies control most of the $308 billion stablecoin market. Tether recently announced its own push into the U.S. market through a new dollar-backed token called USAT.

O’Reilly added that launching a proprietary stablecoin allows Fidelity to develop a broader range of blockchain financial services. He stressed that FIDD represents core infrastructure that will support future onchain products built by Fidelity and external partners.

U.S. Banks Ramp Up Stablecoin Efforts

Notably, Fidelity joins a wave of traditional U.S. financial institutions that have launched or explored stablecoins since 2025. 

For instance, JPMorgan Chase introduced JPMD in June 2025 on Coinbase’s Base network to enable continuous institutional settlement and interest-bearing tokenized deposits, building on its earlier JPM Coin. Last February, Bank of America hinted at plans to launch a stablecoin.

Also, Citibank revealed in July 2025 that it is developing its own stablecoin project. At the same time, JPMorgan, Bank of America, Citigroup, and Wells Fargo have discussed a joint stablecoin project since May 2025.

Global Banks Follow the Same Path

Across Europe, major banks have also embraced stablecoin development. Société Générale launched USD CoinVertible in June 2025 on Ethereum and Solana. Meanwhile, a European joint venture called Qivalis, formed by ten banks including ING, UniCredit, BNP Paribas, plans to introduce a euro-backed stablecoin in H2 2026.

Additionally, Standard Chartered partnered with Animoca Brands and Hong Kong Telecom in February 2025 to issue a Hong Kong dollar stablecoin under Hong Kong’s regulatory sandbox. Meanwhile, Deutsche Bank continues exploring a euro-backed token under Europe’s regulatory framework.

Industry Leaders See Massive Growth Ahead

Crypto leaders increasingly expect the stablecoin market to grow exponentially in the future. For one, Raoul Pal of Real Vision called stablecoins a defining theme for 2026 during Binance Blockchain Week in December 2025.

Circle CEO Jeremy Allaire predicted in January 2026 that regulated stablecoins could grow about 40% annually and surpass $1 trillion in market value before the decade ends. Galaxy Research presented a similar outlook in December 2025, forecasting that stablecoin transactions could exceed the volume of the U.S. ACH payment system by the end of 2026.