Milestones under the GENIUS Act: Asset management giant Fidelity enters Ethereum with compliant stablecoin FIDD

Beijing Time January 29, 2026, the cryptocurrency market experienced a widespread correction, with Bitcoin falling below $89,000 and Ethereum temporarily losing the psychological barrier of $3,000.

On the same day as the market adjustment, global asset management giant Fidelity Investments officially announced the launch of its first stablecoin—the Fidelity Digital Dollar (FIDD). This product is seen as a significant step for traditional financial giants to move towards compliant digital asset businesses following the passage of the GENIUS Act.

Quick Overview of FIDD Core Information

Fidelity Digital Dollar (FIDD) is not just another stablecoin; it represents the official entry of one of the world’s largest asset management companies. According to publicly available information, several key features of FIDD are summarized in the table below:

According to Mike O’Reilly, President of Fidelity Digital Assets, the launch of FIDD is a natural extension of the company’s long-term belief in the digital asset ecosystem.

Technical Roadmap and Compliance Framework of FIDD

As a financial giant managing nearly $6 trillion in assets, every step Fidelity takes in launching FIDD is carefully designed. The stablecoin will initially be issued on the Ethereum mainnet, which is no coincidence.

Ethereum, as the largest stablecoin ecosystem, holds a dominant position: the market capitalization of stablecoins on the Ethereum network has reached $166.4 billion, accounting for half of the entire stablecoin market. More notably, the annual cumulative transfer volume of stablecoins on Ethereum has exceeded $13.4 trillion, indicating that they have evolved beyond simple crypto trading tools to become practical means of payment and value transfer.

In terms of compliance, the launch of FIDD coincides with a critical moment in U.S. stablecoin regulation. The GENIUS Act was signed into law in July 2025, providing clear federal regulatory standards for payment stablecoins. OCC granted conditional approval to Fidelity Digital Assets in December 2025, based on this regulatory framework. Fidelity will disclose the circulating supply and reserve net asset value of FIDD daily, further enhancing transparency.

Evolution of Market Competition Landscape

The launch of FIDD comes at a time of intense competition and rapid growth in the stablecoin market. As of January 28, 2026, the total global stablecoin market cap has reached $296.95 billion.

In this market, Tether’s USDT accounts for about 60% of the market share, with a market cap of approximately $177 billion, while Circle’s USDC faces competition with a market cap of around $70 billion. Notably, the stablecoin market processed $33 trillion in transactions in 2025, with a monthly transfer volume of $9.67 trillion, a 52.91% increase from the previous month.

It is also worth noting that the timing of FIDD’s release is quite delicate. Just one day before Fidelity announced this, Tether had launched its compliant USAT stablecoin in the U.S. market. Meanwhile, PayPal and Ripple, despite launching their respective stablecoins in 2023 and 2024, have not yet captured more than 10% of Circle’s market share.

Current State and Potential Impact of the Ethereum Market

FIDD’s choice of Ethereum as the initial network is closely related to Ethereum’s current market status. As of January 29, 2026, according to Gate.io data, Ethereum (ETH) is priced at $2,999.88, with a slight 0.7% increase in the past 24 hours. Although Ethereum’s price has recently experienced a correction, it remains near a key psychological level.

The launch of FIDD could impact the Ethereum ecosystem from multiple dimensions:

• Increasing network usage and activity: After FIDD enters the Ethereum network, it will participate in extensive on-chain economic activities. In 2025, the annual cumulative transfer volume of stablecoins on Ethereum reached approximately $13.4 trillion.
• Attracting institutional users: Fidelity’s reputation and compliance framework as a traditional financial institution may attract more institutional users into the Ethereum ecosystem, increasing overall activity.
• Diversifying stablecoins: In a market dominated by USDT and USDC, FIDD’s emergence will provide more options for Ethereum users, especially investors who trust traditional financial institutions.

Fidelity’s Long-term Digital Asset Strategy

Fidelity’s entry into the stablecoin market is not a sudden move but a natural extension of its long-term digital asset strategy. The financial giant has been actively involved in the digital asset ecosystem since 2014 and was one of the earliest mainstream financial institutions to experiment with Ethereum mining.

Fidelity Digital Assets’ strategic layout extends far beyond the issuance of FIDD. The company has launched a spot Bitcoin ETF in the U.S., with its Fidelity Wise Origin Bitcoin Fund holding approximately $17.4 billion in assets. These digital asset initiatives form a synergistic ecosystem, providing clients with comprehensive services from traditional financial products to innovative digital assets.

Interestingly, Fidelity may not be limited to issuing its own stablecoin. In its official announcement, the company hinted that its expertise in reserve management could extend to managing other companies’ stablecoins. This suggests that Fidelity might develop into a service provider for the stablecoin industry, rather than just a product issuer.

Industry Trends and Future Outlook

The launch of FIDD reflects several key trends converging in the stablecoin industry.

Regulatory clarity is a major driving force. With the passage of the GENIUS Act, the U.S. has established a clear regulatory framework for stablecoins, excluding them from the definition of traditional securities, significantly reducing legal risks for the industry.

Emerging markets are also fueling stablecoin adoption. In high-inflation countries like Argentina, Venezuela, and Pakistan, stablecoins have become important tools for hedging inflation and increasing access to U.S. dollars.

Meanwhile, the DeFi (Decentralized Finance) ecosystem is increasingly reliant on stablecoins. As of December 19, last year, the total deposits in the largest DeFi lending protocol Aave exceeded $54 billion, with a large proportion held in major stablecoins.

Looking ahead, the launch of FIDD may just be the prelude to large-scale entry of traditional financial institutions into the digital asset space. Citigroup CEO Jane Fraser has publicly stated that the bank is exploring issuing a so-called “Citi Stablecoin.”

According to Gate.io data, as of 4:00 PM on January 29, 2026, Ethereum’s price hovers around the $3,000 mark. This figure not only reflects current market volatility but also signals an accelerating integration of traditional finance and the crypto world. The launch of Fidelity’s FIDD stablecoin is both an acknowledgment of Ethereum as an infrastructure and a new compliance benchmark for the entire stablecoin market. With traditional financial giants entering the space, it is expected that more financial institutions will follow suit in the coming months, further promoting the integration of digital assets and traditional finance. As traditional financial giants begin issuing their own stablecoins on Ethereum, market consensus is quietly shifting—cryptocurrencies are no longer just speculative tools but are becoming an essential part of modern financial infrastructure.