Fidelity Investments has launched a new government money market fund for stablecoin issuers.
According to a recent report by The Block, the Fidelity Reserves Digital Fund (FYMXX) launched on June 15 and targets institutional investors, particularly stablecoin issuers.
The fund invests only in reserve assets permitted under the U.S. stablecoin regulatory law known as the GENIUS Act. They include U.S. Treasuries (short-, medium- and long-term), cash, overnight repurchase agreements and other government money market funds that comply with relevant regulations.
The minimum initial investment is $1 million. It targets a net asset value of $1 per share, and the management fee is 0.25 percent.
The Block reported that the size of the fund’s assets could change depending on new stablecoin issuance or redemptions of existing supply when market uncertainty or volatility is high.
Earlier this week, State Street also launched a stablecoin reserve-asset money market fund that follows the GENIUS Act. Bank of New York Mellon, Goldman Sachs and BlackRock also introduced similar funds last year.