Fidelity to launch stablecoin in early next month…to be issued by its banking subsidiary

U.S. asset manager Fidelity will launch a dollar-backed stablecoin next month.

According to CoinDesk on the 28th (local time), Fidelity announced that it will launch the dollar stablecoin “FIDD” in early next month. FIDD will be issued by Fidelity’s subsidiary, “Fidelity Digital Assets.” Fidelity Digital Assets is a bank chartered by the U.S. federal government.

FIDD will launch on the Ethereum blockchain. Fidelity said it “may consider expanding to other blockchains or Layer 2 networks in the future.”

FIDD is also expected to trade on Fidelity’s cryptocurrency exchange, Fidelity Crypto, among other venues. Fidelity said “(FIDD) will also be listed on major cryptocurrency exchanges.”

Fidelity plans to disclose FIDD’s outstanding issuance and the size of its reserves daily on its official website. It will also periodically post attestation materials verifying the reserves by third parties. Michael O’Reilly, president of Fidelity Digital Assets, said the GENIUS Act “played a key role” in the stablecoin launch, adding that “a fiat-backed stablecoin launch aligns with customers’ needs related to low-cost payments and settlement.”