Fidelity Joins the Race! The Giant Name Announces It Will Launch Its Own Stablecoin, Revealing Its Chosen Altcoin!

According to Bloomberg, Fidelity Investments is preparing to launch a US dollar-based stablecoin within a few weeks.

According to the announcement, Fidelity Digital Dollar (FIDD) will be launched in accordance with the standards of the new GENIUS Act regarding stablecoins for payment purposes.

Furthermore, FIDD will be launched by Fidelity Digital Assets, a federally mandated national bank and a subsidiary of Fidelity.

FIDD will be backed by cash reserves, cash equivalents, and short-term U.S. Treasury bonds managed by Fidelity.

Fidelity’s GENIUS-compatible stablecoin, FIDD, will initially launch on Ethereum (ETH). However, Fidelity has indicated that it may consider expanding to additional blockchains or layer-2 networks in the future.

Mike O’Reilly, President of Fidelity Digital Assets, said, “This is the next step in the evolution of our digital asset platform. The ability to offer a fiat-backed stablecoin naturally aligns with our customers’ demands, particularly for low-cost payments and exchange transactions.”

This stablecoin targets use cases such as 24/7 enterprise payment processing and off-chain retail payments, putting Fidelity in direct competition with dominant issuers like Circle’s USDC and Tether’s USDT.

*This is not investment advice.

Continue Reading: Fidelity Joins the Race! The Giant Name Announces It Will Launch Its Own Stablecoin, Revealing Its Chosen Altcoin!