Fidelity launches Fidelity Digital Dollar stablecoin for institutional and retail clients

One of the largest asset managers on the planet just entered the stablecoin market, and it did not come quietly. Fidelity Investments launched its own USD-backed stablecoin, the Fidelity Digital Dollar (ticker: FIDD), opening access to both retail and institutional clients at a flat price of $1 per token.

The token went live on February 4, 2026, roughly a week after Fidelity announced the product on January 28.

What FIDD actually is, and how it works

FIDD is issued by Fidelity Digital Assets, National Association, a federally chartered trust bank, meaning it operates under direct federal oversight rather than a patchwork of state money-transmitter licenses.

The stablecoin runs on the Ethereum mainnet, and holders can transfer tokens to any Ethereum wallet address.

Reserves backing FIDD are composed of cash, short-term US Treasuries, and related assets. Fidelity Management and Research Company LLC manages those assets, while the actual reserves sit at BNY Mellon as custodian.

Fidelity publishes daily updates on circulating supply and monthly reports on reserve net asset value. At the time of recent reports, FIDD had reached a circulating supply of approximately 62.6 million tokens, corresponding to a market cap of roughly $62.6M.

FIDD is currently available for trading on select external exchanges, including Bullish and Kraken, in addition to Fidelity’s own platforms.

The regulatory foundation that made this possible

The launch did not happen in a vacuum. FIDD was built under the framework created by the GENIUS Act, the federal stablecoin legislation passed in the summer of 2025 that finally gave US issuers a clear set of rules to follow.

In June 2026, the firm launched the Fidelity Reserves Digital Fund, a product designed specifically for stablecoin issuers and institutional clients that need compliant reserve assets under the new law. That puts Fidelity on both sides of the stablecoin economy: issuing its own token and managing reserves for others who issue theirs.

The Fidelity Reserves Digital Fund puts it in direct competition with institutions like State Street in the reserve management space.

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