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, ...