Fidelity rolls out a money market fund for stablecoin reserves under new U.S. rules, targeting a market projected to grow to trillions.
Fidelity Investments launched the Fidelity Reserves Digital Fund, a money market fund designed to manage reserves for stablecoin issuers and institutional investors. The fund complies with the GENIUS Act, which mandates reserves in cash, short-term Treasuries, or qualifying money market funds.
The move follows State Street’s recent introduction of a similar product, reflecting growing competition among traditional asset managers. Analysts estimate the stablecoin reserve market could expand to trillions of dollars as adoption increases.
The GENIUS Act’s requirements create demand for regulated vehicles like Fidelity’s fund, positioning asset managers to capture a share of the digital asset ecosystem.