Ethereum Gains Wall Street Adoption as $6T Fidelity Prepares FIDD Stablecoin Launch

Fidelity Investments, with up to $6 trillion in assets under management (AuM), plans to launch its stablecoin on the Ethereum network. This move marks the latest crypto push from the asset manager, which already offers several crypto ETFs. With the planned stablecoin launch, the firm also joins a growing number of financial institutions seeking to launch their own stablecoins.  

Fidelity To Launch FIDD Stablecoin On Ethereum

Fidelity will launch a stablecoin, called the Fidelity Digital Dollar (FIDD), on the Ethereum network in the coming weeks. According to a Bloomberg report, the token will be 1:1 backed by the U.S. dollar and available for use across Fidelity’s trading platforms and on crypto exchanges. The asset manager will offer the stablecoin through Fidelity Digital Assets, Fidelity Crypto, and Fidelity Crypto for Wealth Managers.

Mike O’Reilly, president of Fidelity Digital Assets, said stablecoins have the potential to become core instruments for payments and settlement in digital markets. “Real-time settlement, 24/7, low-cost treasury management are all meaningful benefits that stablecoins can bring to both our retail and our institutional clients,” he said

Fidelity Digital Assets, National Association (FDA, NA), will be the stablecoin’s issuer. This institution is a private national trust bank operating under federal charter. Last month, it received conditional approval from the U.S. Office of the Comptroller of the Currency to operate with federal oversight. Meanwhile, Fidelity Management & Research Company LLC will oversee the reserves backing the stablecoin. The reserves will consist of cash and short-term dollar-denominated assets.

The addition of FIDD follows the expansion of Fidelity’s digital asset portfolio. The firm already offers crypto custody and trading services, as well as a retail-focused crypto trading app. Last year, it also launched a crypto individual retirement account (IRA), allowing investors to hold Bitcoin, Ethereum, and Litecoin within tax-advantaged retirement accounts. The asset manager also offers Bitcoin, Ethereum, and Solana ETFs.

How Regulatory Clarity Is Paving the Way For Stablecoin Launches

Several financial institutions have shown their intention to launch their stablecoins since U.S. President Donald Trump signed the GENIUS Act into law last year. Notably, top U.S. banks JPMorgan and Bank of America (BofA) are among institutions that are exploring developing their stablecoins.

U.S. states are also looking to offer their stablecoins. Wyoming has already launched its stablecoin, Frontier Stable Token (FRNT), which went live on the Solana network this year and can be bridged to other networks, including Ethereum. North Dakota also plans to follow in Wyoming’s footsteps, with plans to launch its stablecoin this year.

Amid the rise of stablecoins, USDT issuer Tether has launched its USAT stablecoin, which will be available in U.S. markets and will operate under the GENIUS Act framework. The stablecoin is already available on major exchanges, including Bybit, Crypto.com, OKX, and Kraken.

Meanwhile, thanks to regulatory clarity, the stablecoin industry continues to grow, with its market cap currently at $312 billion, according to CoinGecko data. U.S. Treasury Secretary Scott Bessent predicted that the stablecoin market could be worth up to $3 trillion by 2030.