Fidelity Launches FIDD Stablecoin

Fidelity Investments, managing over $6 trillion in assets, has announced its first stablecoin: the Fidelity Digital Dollar (FIDD). Announced on January 28, 2026, FIDD is set to launch in the coming weeks, marking a major move by a traditional finance giant into blockchain-based payments and settlement.

What Is FIDD?

FIDD is a dollar-pegged stablecoin, meaning 1 FIDD = $1 USD at all times. It’s fully backed by high-quality reserves: cash, cash equivalents, and short-term U.S. Treasuries. These reserves are managed in-house by Fidelity to ensure stability and transparency.

Issued by Fidelity Digital Assets, National Association (a federally chartered trust bank), FIDD will be available through Fidelity’s platforms—including Fidelity Crypto for retail users and services for institutions, as well as on major crypto exchanges. Running on the Ethereum blockchain, it supports fast, 24/7 transfers to any Ethereum address.

FIDD itself doesn’t offer built-in yields, likely to remain complaint with pending US regulation, however its reserve structure (invested in interest-bearing Treasuries) aligns with Fidelity’s broader ecosystem, including tokenized money market funds (MMF) that generate on-chain returns. This setup could make it easier for future products to deliver yields more efficiently and easy to move FIDD into a yield generating product.

Who It’s For

FIDD targets two main groups:

• Institutions — Big players get instant, round-the-clock settlement without traditional banking delays. Perfect for treasury management, payments, and large transfers.
• Retail users — Everyday investors can buy, redeem, and use FIDD for on-chain payments, DeFi, or simply moving value quickly and cheaply.

This fits naturally with Fidelity’s existing crypto offerings: custody, trading, a retail app, and even crypto IRAs. As Mike O’Reilly, president of Fidelity Digital Assets, put it: stablecoins enable real-time settlement, 24/7 access, and low-cost treasury tools – benefits both retail and institutional clients have been asking for.

Read full announcement.

Why It Matters for Crypto Yields

For those tracking interest rates in crypto, FIDD is exciting news. While it doesn’t pay yield directly, it acts as a reliable building block in Fidelity’s on-chain world. It can facilitate smoother redemptions and integrations with tokenized funds that do earn returns from Treasuries and other assets.

This could spark more competition and innovation in yield-bearing stablecoin products. With the stablecoin market already huge (hundreds of billions in circulation), a trusted name like Fidelity entering the space may drive better options for earning interest – whether through lending, staking, or new DeFi strategies using FIDD as collateral.

The launch also reflects growing regulatory clarity in the U.S., especially after recent laws that set clear rules for stablecoin reserves and operations. That framework gave big institutions like Fidelity the confidence to move forward.

The Bigger Picture

FIDD shows traditional finance betting big on blockchain as the future of banking. It’s not just another token – it’s Fidelity putting its reputation behind stablecoins and on-chain finance.

We’ll be watching closely at CoinInterestRate.com: how FIDD performs, any yield-related products that emerge, and how it compares to leaders like USDC, USDT or USAT.