- Fidelity Investments launched a GENIUS Act-compliant reserve fund for issuers.
- Fidelity Reserves Digital Fund holds Treasuries, cash, and overnight repo agreements.
- Wall Street firms, including State Street, race for the stablecoin reserve management market.
Fidelity Investments has entered the stablecoin reserve business with the launch of the Fidelity Reserves Digital Fund, a money market fund built for stablecoin issuers and institutional investors.
The fund is designed to help issuers comply with reserve requirements under the GENIUS Act, the first federal framework for payment stablecoins in the United States.
Fidelity formally announced the product on June 18, putting it in direct competition with similar offerings from State Street and other Wall Street firms.
Fidelity Expands Its Stablecoin Push
The Fidelity Reserves Digital Fund, trading under the ticker FYMXX, aims to preserve capital and maintain liquidity while generating current income. According to its prospectus, the fund seeks to keep a stable net asset value of $1 per share.
The minimum initial investment is $1 million, although Fidelity may lower or waive that threshold. The fund charges a management fee of 0.25%, while filings show a net expense ratio of 0.18%.
Shares are expected to be held mainly by stablecoin issuers as reserve assets backing their tokens. The prospectus noted that assets under management could fluctuate as new stablecoins are issued or redeemed during periods of market stress.
The launch adds to Fidelity’s broader digital asset strategy. Earlier this year, Fidelity Digital Assets introduced the Fidelity Digital Dollar, or FIDD, a dollar-backed stablecoin aimed at institutional and retail users.
Portfolio Matches GENIUS Act Rules
The new fund invests only in assets permitted under the GENIUS Act. Holdings include US Treasury bills, notes, and bonds maturing in 93 days or less, cash balances, overnight repurchase agreements backed by Treasuries, and qualifying government money market funds.
The law requires payment stablecoins to be fully backed by high-quality liquid assets. By creating a dedicated reserve vehicle, Fidelity is positioning itself as an infrastructure provider rather than a stablecoin issuer.
Robin Foley, Fidelity’s head of fixed income, stated that the firm’s long experience in fixed income and money markets makes it well-suited to provide reserve management services under the new regulatory framework.
Wall Street Targets Stablecoin Infrastructure
Fidelity’s entry comes days after State Street launched its own GENIUS Act-compliant reserve fund with Anchorage Digital among its early supporters. BlackRock, Goldman Sachs, and BNY Mellon also introduced similar products earlier in 2026.
Competition among traditional asset managers is transitioning beyond cryptocurrencies and into the infrastructure supporting stablecoins. As adoption grows, reserve management is becoming an increasingly important part of the market.
Stablecoins represent roughly $317 billion in market value, with Tether’s USDT accounting for around 59% of the sector. Industry estimates cited by the State Street project total issuance could climb to between $1.9 trillion and $4 trillion by 2030.
Related: Fidelity Urges SEC to Update Rules Blocking Broker-Dealers From Crypto
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