Fidelity Digital Dollar (FIDD): What It Is, Uses and Risks

Fidelity Digital Dollar (FIDD) is a stablecoin that aims to hold a value of one U.S. dollar. It is issued by Fidelity Digital Assets, National Association, a subsidiary of Fidelity Investments. That makes it unusual among dollar tokens, because the issuer belongs to a large, long-established traditional finance group rather than a crypto-native company.

According to the project's own description, FIDD is meant to rely on the operating standards of Fidelity Digital Assets and to draw on the experience of the wider Fidelity business. Coverage of the launch says the token is backed by reserves held in short-term U.S. Treasury securities and cash, managed by Fidelity.

Like other fiat-backed stablecoins, FIDD is a claim-style token. Each unit is supposed to correspond to a dollar of reserves held by the issuer. The token itself does not generate yield for holders and is not designed to rise in value. Its purpose is to stay close to $1 so it can be used as a digital cash equivalent.

At the time of writing, FIDD ranked around 469 by market capitalization, which makes it a small stablecoin compared with the largest dollar tokens.

FIDD is designed to work as a redeemable digital dollar. Public descriptions say it is meant for use across Fidelity's digital asset platforms and for on-chain transfers. In practice, that points to a few general use cases common to dollar stablecoins:

• Holding a dollar-denominated balance in a crypto wallet without exposure to the price swings of assets like Bitcoin or Ether.
• Sending value between wallets on Ethereum at any hour, without relying on bank settlement times.
• Acting as a trading or settlement asset on platforms that support it.

The details of who can mint or redeem FIDD directly with the issuer, what fees apply, and which exchanges or apps list it are not fully covered in the data available here. Readers should check the issuer's own documentation for those terms.

It is also worth noting that FIDD does not give governance rights, a share in Fidelity, or any claim on profits. It is a payment and settlement instrument. Any use inside decentralized finance depends on whether individual dApps choose to support it, and the data here does not list specific integrations.

As of 2026-11-05, about 46.86 million FIDD were in circulation, and the total supply was the same figure. Because the circulating and total supply match, the fully diluted valuation equals the market capitalization, at about $46.8 million. No maximum supply is set.

That last point is normal for stablecoins. Supply is not fixed by a schedule or emission curve. Instead, new tokens are created when the issuer receives dollars and accepts a mint request, and tokens are removed from circulation when they are redeemed. The supply figure therefore reflects demand and the issuer's operations rather than an inflation plan.

There is no staking reward, burn mechanism or token allocation to founders and investors in the usual sense. The economic design is simple: reserves held by the issuer should be at least equal to the tokens outstanding.

At the time of writing, the price was about $0.9998, close to the $1 target. Reported 24-hour trading volume was about $10.0 million. The seven-day price change was roughly 0.02 percent, which is typical for a token that is working as intended. These figures change constantly and should be checked live.

FIDD is issued on Ethereum as a standard token, so it can be held in any wallet that supports Ethereum tokens. It is not the native coin of any blockchain. Moving it requires a small amount of Ether to pay network fees, unless a service covers those fees for you.

There are two broad ways people hold and trade a token like this:

• Through a custodial platform. The platform holds the tokens on your behalf, and you see a balance in an account. Fidelity's own digital asset platforms are described as one intended venue.
• Through a self-custody wallet. You control the private keys and send tokens directly on-chain. Trades then happen on exchanges or decentralized trading venues that list the token.

Liquidity matters for a stablecoin. A token with modest trading volume can show wider gaps between its quoted price and $1, particularly during market stress, than a larger, more heavily traded one. Before moving significant amounts, check which venues actually list FIDD, how deep the order books or pools are, and what the token's contract address is on Ethereum. Always confirm the address from an official source, as copycat tokens exist for nearly every popular asset.

Fidelity announced FIDD in late January 2026, and news coverage in early February 2026 described its launch on Ethereum. The data does not give an exact launch date for the token, so treat the early-2026 timing as approximate.

The price record gives a few reference points. The all-time high was about $1.011 on 2026-02-04, which is a small premium over the peg and consistent with the early days of trading in a new token, when supply and demand take time to settle. The all-time low was about $0.909 on 2026-09-10. That is a drop of roughly nine percent below the peg, which is a notable deviation for a fiat-backed stablecoin.

public data does not explain what caused that dip, and no cause should be assumed. Brief deviations like this can come from thin liquidity, a large sell order on one venue, or data quirks on a single exchange. Readers who want to understand it should look for the issuer's statements and on-chain data from that date.

By 2026-11-05, the price was back near $1. No one-year price change is available because the token is less than a year old.

A stablecoin is only as sound as its reserves, its legal structure and its operations. Several risks are worth understanding for FIDD.

• Depeg risk. The token aims to trade at $1, but market prices can slip, as the September 2026 low near $0.909 shows. Redemption access matters here, since people who can redeem directly with the issuer help hold the price in line.
• Reserve and issuer risk. Holders rely on the issuer to hold the reserves described, mainly short-term Treasury securities and cash. The data here does not include audit or attestation details, so check what the issuer publishes.
• Regulatory risk. Stablecoin rules differ by country and continue to change. Rules could affect who can hold, issue or trade the token.
• Smart contract and network risk. Because FIDD lives on Ethereum, it carries the risks of its contract code and the network, including possible upgrade, freeze or blacklist functions that issuers sometimes retain.
• Liquidity risk. With a market cap under $50 million, it is smaller than major stablecoins, and large trades can move prices.
• Scams. Fake tokens and phishing links use well-known brand names.

This page is not financial advice.

How you store FIDD depends on how much you hold and how you plan to use it.

For small amounts used often, a reputable software wallet on a device you keep updated can be enough. For larger balances, a hardware wallet keeps your private keys offline and requires physical confirmation of each transaction. Whichever you choose, write down the recovery phrase on paper or metal, store it offline, and never type it into a website or share it with anyone, including people claiming to be support staff.

Before sending any funds, do a few checks:

1. Confirm the token contract address from the issuer's official materials, not from a search ad or a message.
2. Send a small test transaction first when moving a new type of asset.
3. Keep a little Ether in the wallet to pay network fees.
4. Review any token approvals you grant to dApps, and revoke ones you no longer need.

If you use a custodial platform instead, remember that you are trusting the platform as well as the issuer. Turn on two-factor authentication, use a unique password, and understand the platform's withdrawal and redemption terms. Be aware that a stablecoin issuer may be able to freeze tokens at certain addresses under its contract rules.