Fidelity Investments has rolled out a new money market fund crafted specifically to help stablecoin issuers hold the high-quality assets required to back their digital tokens under federal rules. The Fidelity Reserves Digital Fund launched on June 18, 2026, and is structured to meet the strict reserve standards set by the GENIUS Act, the first comprehensive U.S. framework for payment stablecoins enacted in 2025.
The fund focuses on ultra-short-term, low-risk instruments that align precisely with what the legislation allows for backing stablecoins on a one-to-one basis.
Its portfolio includes US Treasury bills, notes, and bonds with remaining maturities of 93 days or less, cash holdings, overnight repurchase agreements collateralized by Treasuries, and shares in other government money market funds that satisfy the rules.
This narrow investment mandate ensures compliance while prioritizing capital preservation and daily liquidity.
The fund aims to maintain a stable $1.00 share price, a hallmark of traditional government money market vehicles, though like all such products it carries no guarantees against loss.
With a net expense ratio of 0.18% after fee waivers (through at least August 2027), the offering is positioned as a cost-efficient option for institutional users, primarily stablecoin issuers.
Minimum initial investments start at $1 million, though waivers may apply.
The fund’s design explicitly anticipates that its shares will serve as reserve assets for stablecoins issued to end customers.
Robin Foley, Fidelity’s head of fixed income, highlighted the firm’s expertise:
“Fidelity has a longstanding history in fixed income and money markets, making us uniquely positioned to offer a money market fund for stablecoin issuers that is compliant with the new GENIUS-Act legislation.”
The GENIUS Act replaced fragmented state-level approaches with clear federal standards.
It mandates that stablecoin issuers maintain 100% reserves in cash, short-term US Treasuries, or similarly high-quality liquid assets, subject to regular audits and transparency requirements.
This regulatory clarity has spurred demand for specialized reserve-management products from traditional asset managers.
Fidelity joins a growing lineup of competitors.
State Street launched a comparable GENIUS-aligned fund earlier in June 2026 with initial seed capital from Anchorage Digital. BlackRock, Goldman Sachs, and BNY have also introduced similar vehicles in 2026. Together, these offerings target a rapidly expanding opportunity.
The global stablecoin market currently stands at roughly $320 billion in circulation, with projections from State Street suggesting potential growth to between $1.9 trillion and $4 trillion by 2030, driven by use cases in payments, trading, and cross-border transfers.
The launch fits into Fidelity’s broader digital-assets strategy. Earlier in 2026, the firm introduced the Fidelity Digital Dollar (FIDD), an enterprise-focused stablecoin product, underscoring its commitment to bridging traditional finance and blockchain-based innovation.
By offering a regulated, transparent vehicle for reserve holdings, Fidelity is helping institutional stablecoin issuers navigate compliance while competing for a slice of what is expected to become a multi-trillion-dollar market segment. The move reflects how legacy financial institutions are adapting infrastructure to support the next wave of digital payments and tokenized assets.