Fidelity Investments has announced the launch of its new stablecoin, the Fidelity Digital Dollar (FIDD), which is based on the Ethereum blockchain. The stablecoin is issued by Fidelity Digital Assets, a federally chartered national bank, and is backed by reserves consisting of cash, cash equivalents, and short-term U.S. Treasury securities, in compliance with the GENIUS Act. FIDD supports 24/7 institutional settlements and on-chain retail payments, with a 1:1 redemption for U.S. dollars on the Fidelity platform. Fidelity will provide daily disclosures of the FIDD issuance and reserves, along with regular third-party audits to ensure transparency and trust. This move marks a significant step in Fidelity's expansion into digital assets, offering enhanced settlement capabilities and payment options for institutional and retail clients.