Fidelity Digital Dollar (FIDD) is a U.S. dollar-pegged stablecoin that Fidelity Investments says it plans to launch in the coming weeks. It is issued by Fidelity Digital Assets, National Association (FDA, NA) and Fidelity states eligible customers can purchase or redeem FIDD from Fidelity at $1 per token.

Fidelity states FIDD is backed by reserve assets made up of cash, cash equivalents and short-term U.S. Treasuries, with reserve asset management conducted by Fidelity Management & Research Company LLC. Fidelity also states it will disclose FIDD circulating supply and reserve net asset value as of the close of every business day on its website.

Based on Fidelity’s announcement, FIDD is designed to function as a redeemable digital dollar for use across Fidelity’s digital asset platforms and on-chain transfers:

• On-platform purchase and redemption: Fidelity states customers can buy or sell FIDD for $1 on Fidelity Digital Assets, Fidelity Crypto and Fidelity Crypto for Wealth Managers (subject to eligibility and availability).

• Transfers on Ethereum: Fidelity states holders may transfer FIDD to any Ethereum mainnet address, with restrictions for addresses Fidelity Digital Assets has frozen or restricted.

• Exchange availability: Fidelity states FIDD will be available for purchase on major exchanges where it is listed.