Fidelity Launches Money Market Fund for Stablecoin Issuers Under GENIUS Act

Fidelity Investments unveiled the Fidelity Reserves Digital Fund on June 18, 2026, a money market vehicle tailored for stablecoin issuers to comply with the GENIUS Act's reserve mandates. The fund, disclosed in an SEC filing, will invest in short-term U.S. Treasuries, cash equivalents, and government-backed repurchase agreements—precisely the assets permitted under the new regulatory framework.

The move positions Fidelity in direct competition with State Street, which introduced a similar product earlier this month. With a 0.18% expense ratio, the fund targets institutional clients navigating the $150 billion stablecoin market's evolving compliance landscape.

"Our decades of fixed income expertise make this a natural extension," said Robin Foley, Fidelity's head of fixed income. The launch underscores how traditional finance giants are capitalizing on crypto regulation—the GENIUS Act replaced fragmented state rules with federal standards last year, creating demand for compliant treasury management solutions.