- Fidelity launched a new money market fund for stablecoin issuers.
- The fund only holds assets allowed under the GENIUS Act.
- Stablecoin companies can use it to manage reserves.
- Institutional investors face a $1 million minimum investment.
Fidelity has launched a new government money market fund specifically designed to serve the growing stablecoin industry.
The Fidelity Reserves Digital Fund allows stablecoin issuers to hold reserve assets in a structure that complies with requirements outlined in the recently passed GENIUS Act.
The fund invests exclusively in highly liquid assets approved for stablecoin reserves, including U.S. Treasury securities, cash, overnight repurchase agreements, and certain government money market funds.
Fidelity expects stablecoin issuers to use the fund as part of the reserves backing their digital assets. As stablecoin supply expands or contracts, assets within the fund are expected to fluctuate accordingly.
The fund launched on June 15 with a management fee of 0.25% and a minimum investment requirement of $1 million for institutional investors.
The launch highlights increasing competition among traditional financial institutions to provide infrastructure for the rapidly growing stablecoin market, which now exceeds $300 billion in total value.
