Fidelity Investments is launching an Ethereum-based stablecoin.

Introduction to the Blockchain World with Fidelity Digital Dollar (FIDD)

Fidelity Investments is launching its first stablecoin, Fidelity Digital Dollar (FIDD), based on the Ethereum network. This new digital asset will be backed by cash, cash equivalents, and short-term U.S. Treasury bills managed by Fidelity. Thus, a payment stablecoin will be offered in compliance with the new federal GENIUS Act regulations.

FIDD focuses on use cases such as 24/7 corporate payments and on-chain retail payments. This positions Fidelity in direct competition with dominant issuers like Circle's USDC and Tether's USDT.

This move by Fidelity may also pave the way for future on-chain financial products.