This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.
“At Fidelity, we have a long-standing belief in the transformative power of the digital assets ecosystem and have spent years researching and advocating for the benefits of stablecoins,” said Mike O’Reilly, President of Fidelity Digital Assets®. “As a leading asset manager and a digital assets pioneer, Fidelity is uniquely positioned to provide investors with on-chain utility via a digital dollar.”
FIDD will seek to provide investors with a stable digital dollar that combines the benefits of digital assets and blockchain technology with the stability and reliability of the U.S. dollar. FIDD will be backed by the stringent operational standards of Fidelity Digital Assets®, which delivers institutional-grade security and is built upon more than a decade of research and development in the digital assets space. FIDD’s key functions will be supported by Fidelity Investments businesses, offering investors a full-service stablecoin model, including:
* Reserve asset management, conducted by Fidelity Management & Research Company LLC, and leveraging Fidelity’s longstanding asset management expertise.
* Purchase and redemption options that will permit customers to buy or sell FIDD for $1 on the Fidelity Digital Assets®, Fidelity Crypto®, and Fidelity Crypto® for Wealth Managers platforms. FIDD will also be available for purchase on major exchanges where FIDD is listed, and holders may transfer FIDD to any[i] Ethereum mainnet address.
* Coin issuance, including FIDD’s circulating supply and reserve net asset value, will be disclosed as of the close of every business day on https://www.fidelity.com/.
With the current stablecoin market cap at more than $316 billion[ii] and a U.S. regulatory framework now in place, Fidelity is one of the first traditional financial institutions to issue its own digital dollar.
“The recent passage of the GENIUS Act was a significant milestone for the industry in providing clear regulatory guardrails for payment stablecoins,” continued O’Reilly. “We’re thrilled to launch a fiat-backed stablecoin at a time of increasing regulatory clarity to better support our customers’ needs, provide choice in the marketplace, and enable continued progress towards a more efficient financial system.”
Read more on Finextra Research
