Fidelity is launching its own stablecoin in the ABD.

Fidelity Investments is preparing to take a significant step towards the future of blockchain-based banking by launching its own stablecoin. The company aims to attract the attention of both institutional and individual investors with the new token called Fidelity Digital Dollar (FIDD). The planned launch date has been announced as the beginning of February.

Fidelity's new stablecoin will be issued by Fidelity Digital Assets. The token will operate on the Ethereum network and will be redeemable for a one-to-one 1 dollar equivalence. Users will be able to access FIDD through Fidelity’s own crypto trading platforms. This enables Fidelity to assume a more active role in the cryptocurrency market.

Fidelity has stated that the reserves of FIDD will consist of cash, cash equivalents, and short-term U.S. Treasury bonds. This reserve structure is in compliance with the stablecoin standards defined by the recently enacted GENIUS Act. The company emphasized that the sizes of the reserves will be shared with the public on a daily basis, and regular third-party audit reports will be published.

Mike O'Reilly, President of Fidelity Digital Assets, noted that this legal framework plays a decisive role in the timing of the product. O'Reilly stressed that regulatory clarity has made stablecoins more functional for institutional finance. This move places Fidelity in direct competition with Circle's USD Coin (USDC) and Tether's USD Tether (USDT) token.

Fidelity's stablecoin launch is seen as a new turning point in the integration of traditional finance with blockchain in a stablecoin market that has grown to over 300 billion dollars. The company aims for FIDD to be not only a payment method but also an important building block for future on-chain financial products. Investors can assess the potential of FIDD in its initial phase by following this development.