Following State Street, Fidelity is targeting reserve assets that underpin the expanding stablecoin market.
By Helene Braun, AI Boost|Edited by Nikhilesh De Jun 17, 2026, 8:30 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on (Smith Collection/Gado/Getty Images)SummaryShow- Fidelity Investments is set to introduce the Fidelity Reserves Digital Fund, a money market fund aimed at stablecoin issuers and institutional investors, in compliance with the new GENIUS Act.
- This initiative follows State Street’s launch of a comparable stablecoin-reserve money market fund, indicating a growing rivalry among traditional asset managers in a market expected to potentially reach trillions of dollars.
- The GENIUS Act mandates that payment stablecoin issuers maintain reserves in cash, short-term U.S. Treasuries, and qualifying government money market funds, thereby increasing demand for regulated products like those from Fidelity and State Street.
Fidelity Investments is now joining the ranks of Wall Street firms interested in the rapidly evolving domain of digital assets by managing the reserves that support stablecoins.
The firm will unveil the Fidelity Reserves Digital Fund, a money market fund tailored for stablecoin issuers and institutional investors, in alignment with the reserve stipulations set forth by the recently enacted GENIUS Act.
This launch is closely timed with State Street’s introduction of a similar offering, the State Street Stablecoin Reserves Money Market Fund, highlighting the increasing competition among traditional financial institutions in a market projected to grow into the trillions of dollars if stablecoins gain a larger role in the global financial landscape.
This anticipated growth will necessitate a corresponding increase in reserve assets that must be allocated to highly liquid investments.
The GENIUS Act, enacted last year, has established the first federal guidelines for payment stablecoins in the U.S. It stipulates that issuers are required to maintain reserves in cash, short-term Treasury securities, and certain government money market funds.
This legislation has opened avenues for conventional asset managers to provide regulated options for stablecoin issuers to manage their reserves while also earning returns.
Fidelity's fund will focus on investing in U.S. Treasury bills, notes, and bonds with maturities not exceeding 93 days, cash, overnight repurchase agreements secured by Treasuries, and other compliant government money market funds.
Robin Foley, Fidelity's head of fixed income, stated, "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."
While Fidelity's announcement concentrated on reserve management, State Street has framed its launch as part of a broader initiative to engage in tokenized finance through collaborations with crypto companies such as Anchorage Digital and products aimed at managing liquidity on-chain.
Fidelity Digital AssetsStablecoinsAI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.Latest Crypto News- 1Here is how Coinbase plan to survive the crypto downturn by ditching its reliance on trading fees1 hour ago
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CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
By CoinDesk ResearchJun 15, 2026In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
Why it matters:
In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
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