Coinspeaker
Jan 28, 2026
6 0

BULLISH 📈 : Fidelity Launches FIDD Stablecoin on Ethereum Under US Law

Fidelity Investments announced the launch of its first stablecoin, the Fidelity Digital Dollar (FIDD), on January 28. This positions Fidelity as one of the first major traditional financial institutions to issue a dollar-backed token following the GENIUS Act signed into law in July 2025.

  • FIDD will be issued by Fidelity Digital Assets and operate on the Ethereum blockchain, redeemable for one US dollar.
  • Reserves will comprise cash, cash equivalents, and short-term US Treasuries.
  • The Office of the Comptroller of the Currency granted conditional approval, requiring further regulatory clearance before launch. Daily disclosures will be available on fidelity.com.

Stablecoin Market Competition

  • The stablecoin market processed $33 trillion in transactions in 2025, with a total market value of $296.95 billion as of January 28, 2026.
  • Ethereum leads with a $166.4 billion stablecoin market cap, followed by TRON at $83.4 billion.
  • Tether’s USDT holds a 60% market share with a $177 billion market cap.
  • Circle’s USDC is under competitive pressure at roughly $70 billion.

Ethereum holds $166.4 billion in stablecoin market cap as of Jan. 28, 2026

Fidelity's announcement follows Tether's US-regulated USAT stablecoin launch on January 27, six months after the GENIUS Act's enactment.

Fidelity’s Digital Asset Strategy

  • Fidelity has engaged in digital asset initiatives since 2014, with stablecoin development plans reported in March 2025.
  • Mike O’Reilly, President of Fidelity Digital Assets, emphasized the GENIUS Act provides clear regulatory guidelines for payment stablecoins.
  • FIDD will soon be available on Fidelity Digital Assets, Fidelity Crypto, and Fidelity Crypto for Wealth Managers platforms. It can also be transferred to any Ethereum wallet upon availability.