Fidelity readies digital dollar as stablecoins move into institutional finance
29.01.2026
6323
Fidelity Investments plans to launch a new stablecoin next month, marking a logical next step for the asset manager as it expands its digital-asset infrastructure following conditional approval for a national trust bank from the Office of the Comptroller of the Currency.
Fidelity readies digital dollar as stablecoins move into institutional finance
Fidelity Investments is dropping a stablecoin next month — because why not? The $6T asset giant just got OCC approval for its national trust bank, and now they're launching the Fidelity Digital Dollar (FIDD) through Fidelity Digital Assets, National Association. This isn't just another crypto play — it's a full-scale invasion of traditional finance into blockchain payments.
Fidelity Digital Assets president Mike O’Reilly told Bloomberg that stablecoins could “serve as foundational payment and settlement services,” citing benefits like real-time settlement and 24/7 availability. Translation: banks are finally waking up to what crypto natives knew years ago.
While Fidelity hasn't spilled all the details, their stablecoin is expected to align with the GENIUS Act framework — the comprehensive US legislation that sets federal standards for payment stablecoins, including reserve backing, issuer oversight, and consumer protections. This isn't some fly-by-night operation; it's regulatory compliance meets blockchain innovation.
Remember: Fidelity was among the first to launch spot Bitcoin ETFs in the US. Their Fidelity Wise Origin Bitcoin Fund currently holds about $17.4 billion in assets. They're not dipping their toes — they're diving headfirst into digital assets.
Regulatory clarity spurs banks and incumbent issuers to issue US stablecoins
The GENIUS Act has turned stablecoin adoption into a full-blown arms race. Major financial institutions like JPMorgan Chase, Citigroup, and Bank of America are all in early development stages. Citigroup CEO Jane Fraser has publicly said the bank is exploring a Citi stablecoin — because apparently every major bank needs its own digital dollar now.
Incumbent stablecoin issuers aren't sitting this out either. Tether just unveiled plans for a federally regulated US dollar stablecoin through Anchorage Digital, a US-chartered crypto bank. Meanwhile, Circle dropped a privacy-oriented version of USDC called USDCx on Aleo. The competition is getting spicy.
- • Fidelity launching FIDD stablecoin next month through newly approved national trust bank
- • Expected to align with GENIUS Act framework for federal standards
- • Fidelity manages nearly $6 trillion in assets, was early Bitcoin ETF adopter
- • Major banks (JPMorgan, Citi, Bank of America) developing their own stablecoins
- • Tether planning federally regulated stablecoin through Anchorage Digital
- • Circle launched privacy-oriented USDCx on Aleo
#GENIUS ACT#Institutional interest in crypto#regulation#stablecoins
Got a topic? Write to ATLA WIRE on Telegram:t.me/atla_community
