Fidelity’s FIDD stablecoin goes live on Ethereum

Fidelity Digital Assets announced the launch of its FIDD native stablecoin. The new token went live on Ethereum. 

Fidelity Digital Assets launched the new FIDD stablecoin, with an initial supply of over $59M. The token went live on Ethereum and is yet to spread to a wider circle of wallets. As Cryptopolitan reported, Fidelity announced its intentions to enter the stablecoin market in the past week. 

In the past year, stablecoins proliferated, reaching a record supply. However, most of the growth came from additional USDT and USDC. The unrolling of the US GENIUS Act set expectations of multiple new stablecoins, often branded or related to fintech entities. 

The launch of a stablecoin does not guarantee immediate liquidity. Fidelity is yet to ensure the usage of its asset, as some of the newly created stablecoins stay idle or only have a minimal supply. Banks, fintech apps, crypto native firms, and wealth managers are competing for a share of the stablecoin market and the potential to deploy liquidity.

Fidelity’s stablecoin is compatible with the GENIUS Act, fully backed by US dollars in accredited banks. Fidelity will also offer custodian holding for USDD, as well as reserve management. Purchase and redemption will be available through Fidelity Digital Assets, Fidelity Crypto, and Fidelity Crypto for Wealth Managers. FIDD will also be available on major exchanges and fully transferable on Ethereum wallets.

High interest rates can boost Fidelity’s activities

Stablecoin issuers are achieving a double effect by launching new assets. For one, they can have a controllable source of liquidity to be used within the crypto ecosystem. 

Since the Genius Act allows for T-bill backing, issuers can also retain the earnings from holding highly predictable US treasuries. Most stablecoin issuers retain the interest for themselves, rarely sharing the funds with token holders. 

FIDD will be used for on-chain payments, as well as institutional settlement. The token will be redeemable for USD by its issuer, with the potential for being added to other on-chain products. 

Fidelity is already experienced with digital asset structure, and is the only ETF issuer that offers proprietary custodian services. 

Fidelity already tokenizes US treasuries

Fidelity already has experience with Ethereum as a tokenization platform. Even before the launch of its stablecoin, Fidelity created a product based on US treasuries. 

The Fidelity Digital Interest Token holds over $161M in assets under management. The token was launched in September 2025 and reached a peak value locked of over $264M. In the past month, the token lost around 32% of its value locked through redemptions.

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