Fidelity Investments launched the Fidelity Reserves Digital Fund on June 18, 2026, a money market fund designed to help stablecoin issuers meet reserve requirements under the GENIUS Act, according to an SEC filing by the firm. The fund competes directly with State Street, which launched a similar fund earlier this month.
The fund will hold 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, per the SEC filing. Those assets align precisely with what the GENIUS Act permits for backing payment stablecoins. The fund charges a net expense ratio of 0.18% and seeks a stable $1.00 share price.
“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,” Fidelity head of fixed income Robin Foley said in the filing.
The GENIUS Act established the first federal framework for payment stablecoins, signed into law last year, replacing a patchwork of state rules and private disclosures. It requires issuers to back outstanding stablecoins one-to-one with high-quality liquid assets, opening a defined market for asset managers that already run such products.
Fidelity linked the launch to its wider digital asset strategy. Earlier this year, Fidelity Digital Assets introduced the Fidelity Digital Dollar (FIDD), an enterprise-facing stablecoin product.
The stablecoin market currently holds approximately $320 billion in circulating tokens, per State Street, which forecast stablecoin issuance could reach $1.9 trillion to $4 trillion by 2030. 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. BlackRock, Goldman Sachs, and BNY each launched GENIUS Act-aligned reserve funds earlier in 2026.
Fidelity’s entrance into reserve fund management puts it alongside State Street, BlackRock, Goldman Sachs, and BNY – all of which have launched GENIUS Act-aligned products in 2026. Together they are competing for a pool of assets that State Street estimates could reach $1.9 trillion to $4 trillion by 2030, as stablecoin issuance grows across payments, trading, and cross-border transfer use cases.
State Street Launches GENIUS Act-Aligned Money Market Fund for Stablecoin Reserves
The $5 trillion asset manager is the fourth major institution after BlackRock, Goldman Sachs, and BNY to target stablecoin reserve management, partnering with Anchorage Digital on a fund that launched with $121 million in initial assets.
