Fidelity to Enter Stablecoin Market With Ethereum-Based ‘Digital Dollar’

Fidelity Investments will expand its digital asset offerings with plans to launch its own U.S. dollar-pegged stablecoin, the Fidelity Digital Dollar (FIDD), the firm said in a press release.

The new token will be available to retail and institutional investors “in the coming weeks” and run on the Ethereum blockchain.

The stablecoin will be issued through Fidelity Digital Assets, the firm’s crypto-focused subsidiary and be fully backed by U.S. dollars and high-quality cash equivalents.

“As a leading asset manager and a digital assets pioneer, Fidelity is uniquely positioned to provide investors with on-chain utility via a digital dollar,” said Mike O’Reilly, president of Fidelity Digital Assets, in the press release.

Fidelity’s new Ethereum-based token will enter a very crowded market with incumbents like Circle’s USDC and Tether’s USDT, which together account for 82% of the total stablecoin market capitalization.

Stablecoins experienced record growth in 2025. By the end of the year, the category’s market capitalization had grown by 49% to $306 billion. As of this writing, the market cap has now reached $311 billion, according to crypto price aggregator CoinGecko.

The growth owes in large part to the signing of the GENIUS Act in July. It allowed for the issuance and trading of stablecoins in the U.S.

In March 2025, a person familiar with the firm told Decrypt that Fidelity had started testing a stablecoin. At the time, the unnamed source said the $5 trillion asset manager wasn’t yet ready to bring the token to market.

Fidelity’s move reflects growing interest among traditional financial firms in stablecoins as blockchain-based settlement gains traction—even though not all of them want to offer a retail product.

JPMorgan made waves last year when it filed a trademark for “JPMD,” setting off speculation that the bank would soon launch a stablecoin. But the token turned out to be a dollar deposit token that now trades on Coinbase-incubated Ethereum layer-2 network Base and the Canton Network.