Fidelity Investments launches its first stablecoin FIDD

Fidelity Investments announced the launch of its first stablecoin, Fidelity Digital Dollar (FIDD), which operates on the Ethereum network and is aimed at both institutional and retail users. FIDD will be backed by cash, cash equivalents, and short-term U.S. Treasury bonds as reserves, and will comply with the new federal GENIUS Act standards for payment stablecoins. The stablecoin is designed for round-the-clock institutional settlements and on-chain retail payments, positioning itself as a competitor to Circle's USDC and Tether's USDT, while also laying the groundwork for future on-chain financial products.