Fidelity Investments is launching the Fidelity Digital Dollar (FIDD), a stablecoin based on Ethereum, to cater to both institutional and retail users. It will be backed by cash and U.S. Treasuries, adhering to the new GENIUS Act's reserve rules, and aims to facilitate 24/7 settlements and on-chain payments.

Analysts at Bernstein report that the recent signing of the GENIUS Act is driving substantial investment interest in Ethereum, with ETH's price rising approximately 25% over the past week. The act provides a regulatory framework for stablecoins, which is expected to enhance Ethereum's role in financial markets and increase its institutional adoption.