Fidelity Investments starts its own stablecoin

[Yamane_Keto]

Fidelity Investments is launching its first stablecoin, the Fidelity Digital Dollar (FIDD), based on the Ethereum network.
FIDD will be backed by reserves of cash, cash equivalents, and short-term U.S. Treasuries managed by Fidelity, in line with the new federal GENIUS Act's standards for payment stablecoins.
The stablecoin targets use cases such as 24/7 institutional settlement and onchain retail payments, putting Fidelity in direct competition with dominant issuers like Circle’s USDC and Tether’s USDT while laying groundwork for future onchain financial products.

For years, USDT, USDC, and DAI have dominated the stablecoin market. However, in early February, the idelity Digital Dollar (FIDD), issued by the federally chartered national bank, will be launched and will soon be available for trading.

Will it be a good alternative to USDT?

[Charles-Tim]

Stable coins is now launched by many organizations after Trump become the president, this kind of news is not new to me anymore because I have heard different other ones. I am not implying that it is not good that you brought it on this this forum, but my post is about how many companies are creating their own stable coins now, including USD1 that belongs to Trump's family.

Will it be a good alternative to USDT?

USDT and USDC still dominates the stable coin market with more than 83% or so.

[OmegaStarScream]

Well, it all depends on its adoption. Chains supported, exchanges, wallets, payment processors, etc.

Other than that, I don't expect it to be any different from USDT or USDC. Fully centralized, with the ability to freeze funds.

But it's good to have competitors out there, the worse thing we could have is  one stablecoin issuer, that way even users could protect themselves by divertisfying their holdings.

[coinlary]

For years, USDT, USDC, and DAI have dominated the stablecoin market.
[Edited out]
Will it be a good alternative to USDT?

We have some stable coins also competing but so far it's  always been USDT, it not bad to have another close competitor aprt from USDC . And just as it's been mentioned,  i don't  think there would  be any significance difference aswell. It's  definitely  another centralized coin.

Here's a table showing top 10 dominace based on market cap:


pie chart


Source: defillama

Even DAI is on 6th position, didn't  even know the figures of stablecoins have rised so much. I guess they need to make the list to compete.

[blockman]

Will it be a good alternative to USDT?

We will see if the demand grows for that FIDD then it will be a good alternative. And I think people won't mind what stable coin they use, for as long as it's liquid and has got a volume and its use about stability will be there, they're going to use it. If the exchanges will give it an opening and support to their pairs then that will help to grow its volume. But if not, they'll have to crawl from the competition if they are serious about it. It is interesting that this is what they want to compete with.

[shinratensei_]

When those investment firm realize they can get revenue from their stablecoin while getting yield from bonds on the side + capital gain from holding gold as "cash equivalent" they'd all create stablecoins . We're at early stage where only limited amount of company knows it hence we'll see more of stablecoin deployed.

Will it be a good alternative to USDT?

Alternative, maybe yes. Competitor? not so much. Their domination is already too huge. Even USDC has lower trading volume by a big gap in big exchanges. Though, it's good if they can somehow replace USDT. I'm tired holding USDT because the volatility that keeps changing even though it still stays on the peg range.

[Orpichukwu]

I don't see it as a threat to USDT. They are not offering any different service compared to what USDT and other already existing stablecoins are offering.

PYSUSD has even gained ground up to the 7th position among every other stablecoin. Unless they are ready to offer decentralisation, which we already know is not possible, they are a centralised entity which is being given authority to launch their own stablecoin. They will definitely be like USDT, which is in collaboration with FEDs, and they will go ahead and freeze your holdings whenever they want.

[Yamane_Keto]

I forgot to mention that Fidelity Investments holds approximately $16.4 trillion in Assets Under Administration (AUA), while Tether Holdings Ltd (which issues USDT) has $187 billion in total assets. Fidelity (FIDD) is considered more secure and regulated for institutions, making it significantly safer than Tether Holdings (USDT.)


source Google

[Balmain]

I believe FIDD will be a serious and powerful alternative to existing stablecoins. The fact that a well-established, recognized company with a high corporate reputation like Fidelity is issuing a digital dollar through a federally authorized national bank could create a new standard in the market in terms of trust and transparency.

[TastyChillySauce00]

I forgot to mention that Fidelity Investments holds approximately $16.4 trillion in Assets Under Administration (AUA), while Tether Holdings Ltd (which issues USDT) has $187 billion in total assets. Fidelity (FIDD) is considered more secure and regulated for institutions, making it significantly safer than Tether Holdings (USDT.)

Good news to be honest, any stablecoin coming from corporation with huge treasury is always better than those over collateralized stablecoin. One more risk to eliminate and since Tether resist MiCA compliance, they can try to dominate the EU market.
Any stablecoin that refuse to be transparent and regularly audited, will be abandoned in the future. If we have no choice but to choose centralized stablecoin, might as well coming from corporation with trillions behind it.

[asriloni]

Will it be a good alternative to USDT?

It will obviously be a good alternative to USDT. We're all aware how tether is always lacking of transparency on its reserve that used to back their USDT. So, FIDD can become an alternative stable coin that fully backed and regulated. However, i feel a bit weird with the amounts of companies are deciding to release their own stabile.

I don't wanna call it's bad, but the amounts of stable tokens in crypto are flooding. We have USDC, USDT, USDS, PYUSD, and many more. So the new stable token like this is not really needed after all. I guess it's just a part of fidelity's plan to attract people to exchange their value with it with Fidelity stable.

So they can regularly receive their yield, while their stable users get nothing. They're starting to follow tether's business. 

[bangjoe]

Fidelity Investments is launching its first stablecoin, the Fidelity Digital Dollar (FIDD), based on the Ethereum network.
FIDD will be backed by reserves of cash, cash equivalents, and short-term U.S. Treasuries managed by Fidelity, in line with the new federal GENIUS Act's standards for payment stablecoins.
The stablecoin targets use cases such as 24/7 institutional settlement and onchain retail payments, putting Fidelity in direct competition with dominant issuers like Circle’s USDC and Tether’s USDT while laying groundwork for future onchain financial products.

For years, USDT, USDC, and DAI have dominated the stablecoin market. However, in early February, the idelity Digital Dollar (FIDD), issued by the federally chartered national bank, will be launched and will soon be available for trading.

Will it be a good alternative to USDT?

The stablecoin business is very profitable. We see how revenue from Tether and other stablecoin issuers make big profits in the crypto market. Seeing Fidelity enter this market by bringing Stable coins, in my opinion, is not strange and of course this makes the market bigger and liquidity will be much easier in the future when these stable coins can be accessed and integrated directly with fiat to crypto exchanges.

Whether it's good or not, I haven't judged it as a whole because we have to read more about $FIDD first, and we also need to look at their market cap and partners in the market, because it will depend on the project, how strong it is to compete in the market.

[o48o]

For years, USDT, USDC, and DAI have dominated the stablecoin market. However, in early February, the idelity Digital Dollar (FIDD), issued by the federally chartered national bank, will be launched and will soon be available for trading.

Will it be a good alternative to USDT?

Why do you even bother asking if it might be better on any level? I would like to hear reasoning behind that.

It's owned by private company like rest of them and it complies with GENIUS Act because it's easy to comply with it and it has to. They speak like that's some sort of special accomplishment.

Article doesn't tell if it complies with MICA though, and if it doesn't (which is likely) it will be far from globally adopted. It might be useful for US citizens to buy inside US though.