Fidelity Launches USD-Backed Stablecoin FIDD

Fidelity Digital Assets, National Association (FDA, NA), has introduced a stablecoin called the Fidelity Digital Dollar. The Fidelity Digital Dollar is pegged to the U.S. dollar and backed 1:1 with USD reserves.

This structure allows users to buy and sell Fidelity Digital Dollar tokens easily. Each Fidelity Digital Dollar token is designed to always maintain a value of $1.

FIDD is tied to a fiat currency with transparent reserves held in cash, short-term U.S. Treasuries, and cash equivalents. Its value remains stable, distinguishing it from volatile cryptocurrencies such as Bitcoin.

• FIDD Launch Details
• Stablecoin Market Snapshot
• Why FIDD Matters?
• FIDD and Market Position

FIDD Launch Details

On February 4, 2026, the Fidelity Digital Dollar, also known as FIDD, was officially launched, marking a significant milestone in the U.S. financial system. The Fidelity Digital Dollar is a blockchain-based form of money issued by Fidelity Digital Assets, providing the credibility of traditional finance within a digital asset framework.

FIDD is designed as a fully USD-backed stablecoin, where:

• Each FIDD token represents a real-world value of $1.
• Tokens can be redeemed at par value.
• Reserves are held in cash, cash equivalents, and short-term U.S. Treasury instruments.
• Tokens are issued on the Ethereum blockchain, enabling global transferability and wallet compatibility.

FIDD stands out among stablecoins due to its strong institutional foundation and operational transparency.

Stablecoin Market Snapshot

The stablecoin sector has become a critical component of global digital finance and has achieved mainstream financial relevance. According to market data:

• The global stablecoin market capitalisation has surpassed $316 billion, reflecting strong institutional and consumer demand.
• Approximately 99% of stablecoins are pegged to the U.S. dollar, reinforcing their role in extending dollar liquidity globally.

Major stablecoins such as USDC and USDT dominate the market, with capitalisations ranging from tens to hundreds of billions of dollars. These assets play a central role in cross-border liquidity, payments, and trading activity.

By entering this market, FIDD gains exposure to an established and rapidly expanding ecosystem, supported by Fidelity’s extensive infrastructure and regulatory experience.

We are excited to introduce Fidelity Digital Dollar (FIDD), a new stablecoin issued by Fidelity Digital Assets, NA and pegged 1:1 to the U.S. dollar.

Learn more and get started with FIDD: https://t.co/VlsKPR2BFY pic.twitter.com/wnOnXCRO03

— Fidelity Digital Assets (@DigitalAssets) February 4, 2026

Why FIDD Matters?

FIDD’s launch is significant for several reasons:

1. Institutional trust: FIDD is backed by Fidelity Investments, a globally recognised financial institution. Unlike some stablecoins issued by crypto-native firms, FIDD benefits from the credibility and governance standards of traditional finance.
2. Reserve transparency: FIDD publishes monthly reserve reports audited by PwC, adding a layer of independent verification and audit-grade transparency.
3. Accessibility: FIDD can be transferred to any Ethereum-compatible address and traded across supported platforms, making it suitable for cross-platform and cross-border use.
4. Regulated framework: The launch aligns with the GENIUS Act, which strengthens consumer protections and mandates full reserve backing for stablecoins in the U.S.

These elements reflect a broader industry shift toward regulated, fully-backed stablecoins designed to enhance trust and transparency.

FIDD and Market Position

FIDD enters a competitive landscape dominated by established players such as Tether’s USDT and Circle’s USDC. However, FIDD differentiates itself through its emphasis on regulatory compliance, institutional-grade governance, and reserve transparency.

As traditional finance and digital assets continue to converge, regulated stablecoins are becoming increasingly important for institutional adoption, digital payments, and on-chain settlement systems.

FIDD’s entry strengthens the stablecoin ecosystem by introducing a digital dollar backed by a major financial institution, potentially accelerating adoption across payments, treasury management, and decentralised finance.

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