Educational
Why Fidelity Digital Dollar (FIDD)?
The next chapter for Fidelity Digital Assets®
May 20, 2026 • 7 min read
Over a decade ago, Fidelity Investments® began exploring digital assets through firsthand experience, knowing this was the best way to truly understand their impact on the financial markets. That early exploration—rooted in research, experimentation, and infrastructure development—ultimately led to the establishment of Fidelity Digital Assets®.
Since then, Fidelity Digital Assets has grown alongside the market. We have expanded our capabilities to provide clients with secure, institutional grade access to digital assets, informed by deep traditional financial expertise and hands on experience in the digital assets ecosystem.
Now, our long-standing conviction in digital assets continues with the launch of Fidelity Digital DollarSM (FIDD). Issued by Fidelity Digital Assets, National Association, FIDDSM is a stablecoin pegged 1:1 to the U.S. dollar that combines the utility of stablecoins with Fidelity’s commitment to the highest institutional standards and operational rigor.
As the financial landscape increasingly moves on-chain, FIDDSM is designed to support the evolving needs of both institutional and retail investors by providing a trusted, transparent, and dollar backed on-chain asset.
The FIDD Difference
FIDD offers clients a fully backed, transparent, and stable digital dollar built on the same institutional standards that define Fidelity Digital Assets’ custody and trading platform. It is backed by cash, U.S. Treasuries, and other safe, liquid assets, with reserves managed by Fidelity Management & Research Company LLC and held at the Bank of New York Mellon.
What distinguishes FIDD from other stablecoins is the way it is built and operated. Fidelity Digital Assets manages FIDD through a fully integrated, end to end model—covering issuance, reserve management, custody, trading, and ongoing oversight under a single operational and governance framework.
By designing and maintaining the full stack in house, Fidelity Digital Assets can apply consistent standards across technology, controls, and risk management, reducing reliance on third party vendors and helping provide greater transparency into how the stablecoin operates throughout its lifecycle.
Transparency is central to this approach. FIDD’s circulating supply and reserve net asset value are disclosed as of the close of every business day, and monthly reserve reports are examined by PricewaterhouseCoopers LLP in accordance with AICPA attestation standards.
This end-to-end structure supports a robust risk management framework designed to protect client information and help safeguard assets. Fidelity Digital Assets’ processes are built with a security-first mindset and are continuously refined to uphold strong operational control objectives—principles that extend to the maintenance and operation of FIDD.
Eligible clients can buy or sell FIDD for $1 through Fidelity Digital Assets, Fidelity Crypto®, and Fidelity Crypto® for Wealth Managers. FIDD is also available on certain exchanges (including Bullish and Kraken) and availability may expand as additional exchanges choose to support the token. Clients who access FIDD through our platform also benefit from the same white glove, 24/7 service we offer across our offerings.
Beyond these platforms, FIDD can be transferred to eligible Ethereum mainnet addresses,* enabling a wide range of on-chain uses for institutions and individuals.
Why Launch FIDD Now?
The role of stablecoins has expanded significantly in recent years, surpassing a $308 billion global market cap as of late 2025. As adoption accelerates, investors are seeking options from issuers with experience across both traditional financial markets and the fast growing digital assets ecosystem.
The 2025 passage of the GENIUS Act further supported this momentum by establishing a clearer regulatory framework for payment stablecoins and setting guardrails that support responsible innovation across the industry.
At the same time, the use cases for stablecoins are evolving. On chain activity is expanding across trading, payments, and everyday value transfer, mirroring broader shifts in how financial services operate. Global digital payment volumes are projected to surpass $33 trillion by 2030, and digital wallets are estimated to power more than $25 trillion in global transaction value by 2027—signaling a shift toward a mobile-first financial system.1
Within this context, stablecoins are gaining recognition not just as instruments for price stability, but as a foundational infrastructure for a more interoperable financial system. Institutions are actively evaluating how on chain dollars could support a range of evolving needs, including:
- Settlement and payments, where faster, more continuous transaction rails may help improve efficiency and liquidity management
- Account funding and movement of capital, enabling more seamless interaction between traditional accounts and on chain environments
- Tokenized markets, as activity around tokenized real world assets (including securities) continues to develop
As institutions consider how stablecoins like FIDD could support these use cases and others, the underlying requirement is clear: a stable, transparent digital dollar that can operate across both existing financial systems and emerging on-chain markets.
Fidelity Digital Assets continuously evaluates new ways for clients to engage with digital assets on their own terms across the broader ecosystem. FIDD reflects that principle by introducing a regulated, dollar-backed option designed to support institutions as they prepare for—and help shape—the next stage of digital finance.
Looking Ahead: The Future of FIDD
The launch of FIDD aligns with Fidelity Digital Assets’ broader mission: to expand access, provide choice, and support institutional investors as the financial landscape becomes increasingly digital. While today’s use cases primarily center on stability and on-chain utility, FIDD’s capabilities and applications will grow alongside clients’ needs and the evolution of digital finance.
FIDD also represents the convergence of Fidelity Investments’ traditional financial expertise and a long-standing belief in the transformative potential of digital assets. As the ecosystem matures, FIDD is designed to offer stability, transparency, and utility—anchored in the institutional standards our clients have come to expect.
Tell us how FIDD could support your business.
Whether you’re exploring new payment flows, on chain settlement, or other stablecoin use cases, we want to know what matters most to your strategy.
Get in touch to start the conversation and help inform what comes next.
*Clients will not be able to transfer to addresses Fidelity Digital Assets has frozen/restricted on the blockchain, even if they hold FIDD off-platform.
1Worldpay, Global Payments Report: 2025, published May 2025, https://worldpay.com/en/insights/articles/gpr-2025-released
The information herein was prepared by Fidelity Digital Assets, National Association (“FDA, NA”) and Fidelity Digital Assets, Ltd (“FDA, LTD”). It is for informational purposes only and is not intended to constitute a recommendation, investment advice of any kind, or an offer to buy or sell any asset. Perform your own research and consult a qualified advisor to see if digital assets are an appropriate investment option.
Digital assets are speculative and highly volatile, can become illiquid at any time, and are for investors with a high risk tolerance. Investors in digital assets could lose the entire value of their investment. Digital assets are not insured or guaranteed by the Federal Deposit Insurance Corporation, or any other government agency, and are not obligations of any bank.
Custody and trading of digital assets are provided by FDA, NA, which is a national trust bank. FDA, LTD relies on FDA, NA for these services. FDA, LTD is registered with the Financial Conduct Authority under the U.K.’s Money Laundering Regulations. The Financial Ombudsman Service and the Financial Services Compensation Scheme do not apply to the cryptoasset activities carried on by FDA, LTD.
To the extent this communication constitutes a financial promotion in the U.K., it is issued only to, or directed only at, persons who are: (i) investment professionals within the meaning of Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "FPO"); (ii) high net worth companies and certain other entities falling within Article 49 of the FPO; and (iii) any other persons to whom it may lawfully be communicated.
This information is not intended for distribution to, or use by, anyone in any jurisdiction where such distribution would be contrary to local law or regulation. Persons accessing this information are required to inform themselves about and observe such restrictions.
FDA, NA and FDA, LTD do not provide tax, legal, investment, or accounting advice. This material is not intended to provide, and should not be relied on, for tax, legal, or accounting advice. Tax laws and regulations are complex and subject to change. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.
Views expressed are as of the date indicated, based on the information available at that time, and may change based on market or other conditions. Unless otherwise noted, the opinions provided are those of the speaker or author and not necessarily those of Fidelity Digital Assets or its affiliates. Fidelity Digital Assets does not assume any duty to update any of the information.
The description of the audits and reports pertain to products and services of Fidelity Digital Assets, National Association.
The Fidelity Digital Dollar (FIDD) is a stablecoin valued at the redemption price ($1/unit). FIDD is issued by Fidelity Digital Assets, National Association ("FDA, NA"). Customers of FDA, NA can purchase and redeem FIDD for $1/unit from FDA, NA. Access to FIDD is subject to availability based on account eligibility. Learn more in FIDD's Terms.
Fidelity Digital Assets and the Fidelity Digital Assets logo are registered service marks of FMR LLC.
© 2026 FMR LLC. All rights reserved.