Fidelity to launch First Stablecoin Fidelity Digital Dollar (FIDD);
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Tanzil Akhtar
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Fidelity Investments is preparing to enter the stablecoin market with the upcoming launch of its first digital dollar token, Fidelity Digital Dollar (FIDD).
In an announcement on Wednesday, Fidelity, one of the world's largest asset managers, said it is entering a decentralized payments and blockchain-based financial infrastructure.
The stablecoin is expected to be offered by Fidelity Digital Assets, the National Association and retail and institutional investors in the coming weeks.
Fidelity says the product combines the reliability of the US dollar with the practical benefits of blockchain technology.
A digital dollar supported by Fidelity's Institutional Infrastructure
FIDD aims to provide investors with a stable digital representation of the US dollar, backed by Fidelity's institutional level protection and security framework. The company explains that the token will be built on more than ten years of digital asset research and development.
“At Fidelity, we have long believed in the transformative power of the digital assets ecosystem,” said Mike O'Reilly, president of Fidelity Digital Assets. “As a leading asset manager and pioneer of digital assets, Fidelity is uniquely positioned to provide investors with an on-chain facility for digital dollars.”
Full Service Stablecoin Model: Issuance, Reserves and Redemption.
Fidelity said FIDD's key functions will be supported by multiple Fidelity business units, offering it as a full-service stablecoin model.
Reserve asset management is performed by Fidelity Management & Research Company LLC, leveraging the company's long-term experience in managing client assets.
Eligible customers can purchase FIDD tokens on Fidelity platforms including Fidelity Digital Assets, Fidelity Crypto and Fidelity Crypto for Wealth Managers at a 1:1 exchange rate to the US dollar.
FIDD is also available on major exchanges where it is listed, and holders can transfer the token to any Ethereum mainnet address. Fidelity publishes daily statements on its website about distribution availability and reserve net asset value.
The launch comes amid regulatory transparency and market growth
As Fidelity's entry stablecoin continues to expand rapidly, the market now exceeds $316 billion in total capitalization.
The company pointed to the recent Genius Act as a key development in providing a stable coin for payment in the United States.
“At a time of increasing regulatory transparency, we are excited to have a fiat-backed stablecoin,” said O'Reilly, whose goal is to support consumer choice and enable a more efficient financial system.
Reports have been circulating for some time that Fidelity was preparing to launch its own stablecoin – and now the company is ready to officially launch the Fidelity Digital Dollar.
Integrity expands the digital asset ecosystem
Fidelity has been building its digital assets strategy since 2014, developing infrastructure and services comparable to those offered in traditional markets, including research, protection, trading and investment products.
The launch of FIDD is the latest step in expanding the company's digital assets to intermediaries, institutions and retail investors, where stablecoins will become an integral part of modern financial rails.
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