The Fidelity Digital Dollar (FIDD) is designed to provide investors with the benefits of digital assets and blockchain technology as well as the stability and reliability of the U.S. dollar, the financial services firm said in a Wednesday (Jan. 28) press release.
FIDD will be issued by Fidelity Digital Assets, National Association, and will be available for retail and institutional investors within weeks, according to the release.
The reserve asset management will be conducted by Fidelity Management & Research Company, and coin issuance will be disclosed as of the close of every business day on a Fidelity website, the release said.
Customers will be able to buy and sell FIDD for $1 on the Fidelity Digital Assets, Fidelity Crypto, and Fidelity Crypto for Wealth Managers platforms. In addition, they will be able to buy the stablecoin on major exchanges where it is listed, and holders will be able to transfer FIDD to any Ethereum mainnet address, per the release.
“As a leading asset manager and a digital assets pioneer, Fidelity is uniquely positioned to provide investors with on-chain utility via a digital dollar,” Fidelity Digital Assets President Mike O’Reilly said in the release.
The passage of the GENIUS Act provided a U.S. regulatory framework for payment stablecoins, O’Reilly said.
“We’re thrilled to launch a fiat-backed stablecoin at a time of increasing regulatory clarity to better support our customers’ needs, provide choice in the marketplace, and enable continued progress towards a more efficient financial system,” O’Reilly said.
It was reported in March that Fidelity Investments was preparing to launch its own stablecoin as part of the company’s expansion into the burgeoning market for tokenized versions of U.S. securities.
Fidelity Investments announced in April that it launched an IRA plan that lets investors directly invest in crypto, including bitcoin, ether and litecoin. The Fidelity Crypto IRA joined several crypto exchange-traded funds offered by Fidelity that enable investors to track the prices of digital assets without directly investing in them.
For all PYMNTS digital transformation coverage, subscribe to the daily Digital Transformation Newsletter.