Fidelity Investments to Launch Stablecoin

Fidelity Investments is set to launch its first stablecoin, Fidelity Digital Dollar (FIDD), which will be issued by Fidelity Digital Assets, National Association, and available for retail and institutional investors in the coming weeks, according to a story in MarketsMedia news.

FIDD will seek to provide investors with a stable digital dollar that combines the benefits of digital assets and blockchain technology with the stability and reliability of the U.S. dollar. FIDD will be backed by the stringent operational standards of Fidelity Digital Assets, which delivers institutional-grade security and is built upon more than a decade of research and development in the digital assets space. FIDD’s key functions will be supported by Fidelity Investments businesses, offering investors a full-service stablecoin model, including:

• Reserve asset management, conducted by Fidelity Management & Research Company LLC, and leveraging Fidelity’s longstanding asset management expertise.
• Purchase and redemption options that will permit customers to buy or sell FIDD for $1 on the Fidelity Digital Assets, Fidelity Crypto®, and Fidelity Crypto® for Wealth Managers platforms. FIDD will also be available for purchase on major exchanges where FIDD is listed, and holders may transfer FIDD to any Ethereum mainnet address.
• Coin issuance,including FIDD’s circulating supply and reserve net asset value, will be disclosed as of the close of every business day on https://www.fidelity.com/.

With the current stablecoin market cap at more than $316 billion and a U.S. regulatory framework now in place, Fidelity is one of the first traditional financial institutions to issue its own digital dollar.