Fidelity to Launch Digital Dollar Stablecoin via Trust Bank
Fidelity Investments plans to introduce a U.S. dollar stablecoin next month, using its newly approved national trust bank, in a move that signals expanding institutional use of blockchain-based payment rails.
Bloomberg reported Wednesday that the token, called the Fidelity Digital Dollar (FIDD), will be issued by Fidelity Digital Assets, National Association, the national trust bank that received conditional approval from the Office of the Comptroller of the Currency in December.
Mike O’Reilly, president of Fidelity Digital Assets, said stablecoins could function as core payment and settlement infrastructure, citing benefits such as real-time settlement and 24/7 availability.
Fidelity has not provided further details on the stablecoin’s design, but it is expected to align with the framework set out in the GENIUS Act, the U.S. legislation establishing federal standards for payment stablecoins, including requirements for reserve backing, issuer supervision, and consumer protections.
Fidelity, which manages nearly $6 trillion in assets, has been an early adopter of digital assets among traditional managers. It was among the first to launch spot Bitcoin (BTC) exchange-traded funds in the United States, and its Fidelity Wise Origin Bitcoin Fund holds about $17.4 billion in assets, according to industry data.
Regulatory clarity accelerates US stablecoin issuance by banks and established issuers
The passage of the GENIUS Act has intensified competition around stablecoin adoption in the United States, with major financial institutions including JPMorgan Chase, Citigroup, and Bank of America in early development stages.
Citigroup CEO Jane Fraser has stated that the bank is evaluating a potential Citi-branded stablecoin, signaling growing interest among large lenders in issuing dollar-backed digital tokens.
Existing stablecoin providers are also preparing for broader U.S. deployment. Tether has announced plans for a federally regulated U.S. dollar stablecoin to be issued through Anchorage Digital, a U.S.-chartered crypto bank.
Privacy-focused products are gaining traction as well. Circle recently launched a privacy-oriented version of USDC, known as USDCx, on Aleo.
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