Fidelity Investments has launched the Fidelity Reserves Digital Fund, a money market fund targeting stablecoin issuers and institutional investors, complying with the reserve requirements of the newly enacted GENIUS Act. This move follows State Street's debut of a similar fund, highlighting growing competition among traditional asset managers for the stablecoin reserve market, which could expand to trillions of dollars by 2030. The GENIUS Act requires payment stablecoin issuers to hold reserves in cash, short-term U.S. Treasuries, and qualifying government money market funds. Fidelity's fund invests in U.S. Treasury bills, notes, and bonds with maturities of 93 days or less, cash, overnight repurchase agreements, and other compliant money market funds. The stablecoin market currently stands at roughly $320 billion, with projections reaching $1.9 to $4 trillion by 2030. Fidelity emphasizes its fixed income expertise, while State Street frames its offering as part of a broader push into tokenized finance.

Key facts

• Fidelity launched a money market fund for stablecoin reserves under the GENIUS Act.
• The fund invests in short-term Treasuries, cash, and government money market funds.
• State Street debuted a similar fund, intensifying competition among traditional asset managers.
• Stablecoin market projected to reach $1.9–$4 trillion by 2030.
• GENIUS Act mandates stablecoin issuers hold reserves in cash and short-term Treasuries.