Fidelity Targets Stablecoin Reserve Market With New Fund Fidelity Investments has entered the stablecoin reserve management business with the launch of the Fidelity Reserves Digital Fund, a m
Fidelity Investments has entered the stablecoin reserve management business with the launch of the Fidelity Reserves Digital Fund, a money market fund built specifically for stablecoin issuers that must comply with the GENIUS Act. The fund launched on June 18, 2026, according to an SEC filing by the firm.
Fidelity is stepping into the stablecoin business, but not by issuing its own token. Instead, it has launched a government money market fund specifically designed to hold the reserves backing regulated U.S. payment stablecoins under the GENIUS Act.
The fund targets a net asset value of $1.00 per share and carries a net expense ratio of 0.18%, positioning it competitively against similar products from rivals including BlackRock, State Street, Goldman Sachs, and JPMorgan.
The fund holds U.S. Treasury bills, notes, and bonds maturing in 93 days or less, cash, overnight repurchase agreements backed by U.S. Treasuries, and shares in government money market funds. Those assets align precisely with what the GENIUS Act permits for backing payment stablecoins.
The GENIUS Act created the first federal framework for payment stablecoins in the United States. The law requires issuers to hold reserves in cash, short-term Treasury securities and qualifying government money market funds, and to back outstanding stablecoins one-to-one with high-quality liquid assets.
The launch also connects to Fidelity's broader digital asset push. Earlier this year, Fidelity Digital Assets introduced the Fidelity Digital Dollar (FIDD), an enterprise-facing stablecoin product.
The timing reflects a wider race among established financial institutions to capture a fast-growing market. BlackRock, Goldman Sachs, and BNY each launched GENIUS Act-aligned reserve funds earlier in 2026.State Street launched its own GENIUS Act-aligned fund on June 8 with approximately $121 million in assets and Anchorage Digital among its seed investors.
Stablecoins currently represent roughly $320 billion in market value, and industry projections put global issuance at $1.9 trillion to $4 trillion by 2030. If those forecasts prove accurate, issuers would need to place a substantially larger volume of reserve assets into highly liquid investments permitted under the law.
Sources:Blockhead: Fidelity Launches Money Market Fund for Stablecoin Issuers Under GENIUS ActCrypto Briefing: Fidelity Launches Money Market Fund for Stablecoin IssuersCongress.gov: GENIUS Act Full Text
