Fidelity readies digital dollar as stablecoins move into institutional finance
Fidelity will issue a stablecoin through its newly approved national trust bank, signaling deeper institutional use of blockchain-based payment infrastructure.
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.
Bloomberg reported Wednesday that the Fidelity Digital Dollar, or FIDD, will be issued by Fidelity Digital Assets, National Association, the national trust bank approved by US regulators in December.
Fidelity Digital Assets president Mike O’Reilly told the publication that stablecoins could “serve as foundational payment and settlement services,” citing benefits such as real-time settlement and round-the-clock availability.