Fidelity diving into crypto

Edited from a New England Council report

Fidelity Investments will soon launch the Fidelity Digital Dollar (FIDD), marking a significant expansion into the stablecoin market. The Boston-based financial-services giant will issue the digital currency through Fidelity Digital Assets, National Association, a national trust bank that received conditional approval from the U.S. Office of the Comptroller of the Currency in December. 

FIDD will be pegged one-to-one to the U.S. dollar and backed by reserves held in short-term Treasury securities and cash, managed by Fidelity Management & Research Company LLC. The stablecoin will be available to both retail and institutional investors through Fidelity’s digital asset platforms and on crypto exchanges. 

“We believe stablecoins have the potential to serve as foundational payment and settlement instruments,” Mike O’Reilly, president of Fidelity Digital Assets, told Bloomberg. “Real-time settlement, 24/7, low-cost treasury management are all meaningful benefits that stablecoins can bring to both our retail and our institutional clients.” 

Fidelity’s headquarters, at 245 Summer St., Boston.