Fidelity Expands Crypto Exposure Through Money Market Fund Launch for Stablecoin Issuers
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. The new product directly competes with State Street, which introduced a similar fund earlier this month.
The fund will invest in low-risk assets including U.S. Treasury bills, short-term government bonds, cash, overnight repurchase agreements backed by U.S. Treasuries, and shares in government money market funds. Under the GENIUS Act, these assets are approved as reserves for payment stablecoins. The fund charges a net expense ratio of 0.18% while aiming to maintain a stable share price of $1.
Fidelity’s Head of Fixed Income, Robin Foley, said the company’s long experience in fixed income and money markets positions it well to offer compliant investment products tailored for stablecoin issuers under the new regulation.
The GENIUS Act is the first federal framework in the United States specifically regulating payment stablecoins. It requires issuers to maintain a 1:1 reserve backing with high-quality liquid assets, replacing the previous fragmented system of state-level regulations and private disclosures.
The launch is part of Fidelity’s broader digital asset expansion strategy. Earlier this year, Fidelity Digital Assets introduced Fidelity Digital Dollar (FIDD), a stablecoin product aimed at enterprise and institutional use.
The global stablecoin market is currently valued at around $320 billion. State Street estimates stablecoin issuance could grow to between $1.9 trillion and $4 trillion by 2030. Throughout 2026, major financial institutions including BlackRock, Goldman Sachs, BNY, and State Street have also launched reserve fund products aligned with the GENIUS Act.
Fidelity’s entry adds more competition to the growing stablecoin reserve fund sector as stablecoins continue gaining adoption for digital payments, crypto trading, and cross-border transactions.
