What is Fidelity Digital Dollar (FIDD)?

Quick Facts

  • Issued by Fidelity Digital Assets, National Association (NA)
  • ERC-20 stablecoin pegged 1:1 to the U.S. dollar
  • Launched on the Ethereum mainnet in February 2026
  • Fully collateralized with cash, U.S. Treasuries, and liquid assets
  • Smart contract audited by OpenZeppelin
  • Compliant with the U.S. GENIUS Act reserve standards
  • Reserves custodied at Bank of New York Mellon

Introduction

Fidelity Digital Dollar (FIDD) is a U.S. dollar-backed stablecoin issued by Fidelity Digital Assets, NA — a subsidiary of Fidelity Investments. It is designed to combine the reliability of the U.S. dollar with the efficiency of blockchain-based digital assets.

FIDD targets both institutional and retail users, offering a stable medium of exchange for on-chain payments and settlements.

History & Background

Fidelity Investments has been active in the digital asset space since 2014, developing crypto custody, trading, and investment products over the years. FIDD represents a major step forward: Fidelity's first stablecoin offering, launched in early 2026.

The launch followed the granting of a conditional national trust bank licence to Fidelity Digital Assets, NA by the Office of the Comptroller of the Currency (OCC), giving it a regulated footing to issue and manage the stablecoin.

How Fidelity Digital Dollar Works

FIDD is implemented as a mintable ERC-20 token on the Ethereum blockchain. It uses an ERC-1967 Proxy pattern, which allows the smart contract to be upgraded in the future while maintaining a consistent contract address.

The contract uses role-based access control to manage minting, redemption, and regulatory compliance functions. Issuance and redemption are handled exclusively by Fidelity Digital Assets, NA, meaning users can buy or sell FIDD at a guaranteed $1 price through Fidelity's own platforms.

Users can freely transfer FIDD to any Ethereum mainnet address, subject to any compliance-related restrictions Fidelity may apply.

Tokenomics

FIDD operates on a fully collateralized model: every token in circulation is backed by at least $1 held in reserves, comprising cash, U.S. Treasuries, or other safe and liquid assets. Reserves are custodied at Bank of New York Mellon.

Tokens are minted when users purchase FIDD and burned upon redemption, keeping the circulating supply directly tied to real-world collateral. This model is designed to minimize the risk of de-pegging.

Circulating supply ? 48.38 million FIDD
Total supply ? 48.38 million FIDD
Max supply ? -- FIDD
Updated 22h ago

Ecosystem & Use Cases

FIDD is positioned as a building block for on-chain financial services. Its primary use cases include:

  • Value retention: holding a stable, on-chain representation of the U.S. dollar
  • 24/7 institutional settlement: enabling around-the-clock trade settlement without relying on traditional banking hours
  • Retail payments: facilitating everyday on-chain transactions with reduced volatility
  • Cross-border value transfer: sending funds globally to any Ethereum wallet address

Fidelity has also integrated FIDD with a tokenized money market fund, offering users exposure to yield in a way that complies with GENIUS Act restrictions on stablecoin interest payments.

Team, Governance & Community

FIDD is fully managed by Fidelity Digital Assets, NA, which controls issuance, reserve management, custody, and trading under one governance framework. This end-to-end model distinguishes FIDD from many stablecoins that rely on third-party vendors for critical functions.

Fidelity Investments, the parent company, is one of the world's largest financial services firms, bringing deep institutional credibility and risk management expertise to the project.

Advantages

  • Institutional trust: backed by Fidelity Investments, a globally recognized financial institution
  • Full collateralization: every token is backed 1:1 by safe, liquid assets
  • Audited smart contracts: independently reviewed by OpenZeppelin
  • Regulatory compliance: designed to meet GENIUS Act standards and issued under OCC oversight
  • Integrated model: issuance, custody, and trading managed entirely in-house

Risks & Challenges

  • Centralization: Fidelity controls minting, burning, and can freeze addresses, introducing custodial risk
  • Regulatory uncertainty: evolving stablecoin regulations could impact operations
  • Market competition: faces established rivals such as USDC and USDT with significantly larger market presence
  • Ethereum dependency: subject to Ethereum network congestion and gas fee fluctuations

Long-Term Vision

Fidelity views FIDD as a foundational layer for future on-chain financial products. Beyond payments and settlement, the stablecoin is intended to open the door for broader financial services to be built on-chain — both by Fidelity and by third-party developers.

Fidelity has also indicated it may explore expanding FIDD to additional blockchains or Layer-2 networks, signaling ambitions to grow FIDD into a widely adopted digital dollar across the evolving crypto ecosystem.

Frequently Asked Questions

FIDD is a U.S. dollar-pegged stablecoin issued by Fidelity Digital Assets, NA, a subsidiary of Fidelity Investments. It is an ERC-20 token on the Ethereum blockchain, designed to provide a stable, regulated digital dollar for institutional and retail users.

FIDD is issued and managed entirely by Fidelity Digital Assets, National Association (NA), which handles issuance, reserve management, custody, and trading under one governance framework. Reserves are held at Bank of New York Mellon.

Every FIDD token is fully collateralized by at least $1 in reserves consisting of cash, U.S. Treasuries, or other safe and liquid assets. This ensures a stable 1:1 peg to the U.S. dollar at all times.

Yes. FIDD's smart contract was independently audited by OpenZeppelin, a leading blockchain security firm, with the audit report made publicly available. The contract also uses an upgradeable ERC-1967 Proxy pattern built on OpenZeppelin libraries.

FIDD can be used for value retention, on-chain payments, 24/7 institutional settlement, and cross-border transfers to any Ethereum mainnet wallet. It is also integrated with a tokenized money market fund to provide yield opportunities.

Yes. FIDD is designed to comply with the U.S. GENIUS Act's reserve standards for payment stablecoins. It is issued by Fidelity Digital Assets, NA, which holds a conditional national trust bank licence from the Office of the Comptroller of the Currency (OCC).

Yes. Fidelity Digital Assets retains the ability to freeze or restrict specific Ethereum addresses as part of its regulatory compliance obligations. Users will be unable to transfer FIDD to or from frozen addresses.

Fidelity has stated it may explore expanding FIDD to additional blockchains or Layer-2 networks in the future, though the token currently operates exclusively on the Ethereum mainnet.