TLDR
- Fidelity launches FIDD, a USD stablecoin to rival Ripple’s RLUSD.
- FIDD will be available to institutional clients and retail investors.
- Token launch follows the GENIUS Act standardizing stablecoin rules.
- Ripple’s RLUSD market cap recently surged to $1.4 billion.
Fidelity Investments announced it will launch the Fidelity Digital Dollar (FIDD). The move positions the $12 trillion asset manager as a competitor to Ripple and Tether.
The Ethereum-based token is scheduled to go live in early February. FIDD targets institutional clients needing 24/7 settlement and retail users through the Fidelity Crypto app.
🚨 JUST IN: Fidelity announced the launch of a USD stablecoin, FIDD, built on Ethereum and issued by Fidelity Digital Assets.
Reserves: cash, cash equivalents, and short-term U.S. Treasuries.
GENIUS Act–compliant, with daily disclosures and third-party audits. pic.twitter.com/HWF4w4MVPC— Laura Shin (@laurashin) January 28, 2026
Mike O’Reilly, president of Fidelity Digital Assets, said the launch was prompted by the GENIUS Act, which standardizes reserve requirements for payment stablecoins.
Competition With Ripple and Tether
Ripple has been promoting RLUSD as an enterprise-grade stablecoin for cross-border payments. The token has recently ranked among the top five USD stablecoins by market cap.
Fidelity aims to provide a regulated, federally chartered alternative. FIDD will be issued by Fidelity Digital Assets, a federally chartered bank. This differentiates it from offshore stablecoins like Tether.
The new token will compete for the same corporate treasury clients targeted by RLUSD. Institutional adoption is a key focus for both projects.
XRP Market Trends
Institutional asset manager 21Shares recently released a report on XRP’s 2026 outlook. The base-case target price is $2.45.
The report notes that regulatory clarity and U.S. spot ETF demand are reducing XRP’s circulating supply. XRP exchange reserves have fallen to a seven-year low of 1.7 billion tokens.
21Shares projects that this scarcity and ETF growth could support further price increases. The report also notes the rise of RLUSD, which has increased nearly 1,800% in market cap to $1.4 billion.
Regulatory and Market Context
The GENIUS Act provides federal guidance on reserve requirements for stablecoins. This framework supports the issuance of tokens like FIDD within regulated institutions.
Fidelity’s entry reflects growing interest from traditional finance in blockchain-based payment solutions. The company emphasizes 24/7 settlement capabilities for institutional clients, which aligns with the features promoted by Ripple.
Analysts note that U.S. regulatory clarity is likely to influence the adoption of enterprise stablecoins. Fidelity, Ripple, and Tether are all adapting to this environment to attract corporate users.
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