Fidelity Investments will launch its “Fidelity Reserve Digital Fund” on June 18, positioning it as a money market fund. It is designed to manage reserve assets for stablecoin issuers and institutional investors, in line with regulatory requirements under the U.S. “GENIUS Act.” A few days earlier, State Street (SSB) had already launched a similar product.
Fidelity Reserve Digital Fund goes live Thursday, with investment targets meeting GENIUS Act reserve requirements
According to CoinDesk, the investment targets of the Fidelity Reserve Digital Fund include:
· U.S. Treasury bills, notes, and bonds with a maturity of 93 days or less
· Cash
· Overnight repurchase agreements backed by Treasuries
· Other government money market funds that comply with legal requirements
The “GENIUS Act,” signed into law last year, is the first federal stablecoin framework in the U.S. It requires issuers to hold reserve assets in the form of cash, short-term Treasuries, and certain types of government money market funds.
Fidelity’s head of fixed income, Robin Foley, said in a statement: “Fidelity has a long history in fixed income and money market areas, giving us a unique advantage to provide money market funds that comply with the requirements of the new GENIUS Act for stablecoin issuers.”
State Street also rolls out a similar product, but with a different strategy focus
According to CoinDesk, State Street’s strategy not only includes launching a reserve management product, but also involves partnering with crypto companies such as Anchorage Digital, as well as launching a product designed specifically for on-chain liquidity management, aiming to broadly advance tokenized finance. Fidelity’s announcement, by contrast, focuses on reserve management itself and does not mention any on-chain integration plans. Both will position compliance with the GENIUS Act regulatory requirements as a core selling point.
FAQ
What are the specific reserve requirements for stablecoins under the GENIUS Act?
According to CoinDesk, the GENIUS Act took effect after being signed into law last year. It is the first federal stablecoin framework in the U.S., requiring stablecoin issuers to hold reserve assets in the form of cash, short-term Treasuries, and certain government money market funds. Fidelity’s Reserve Digital Fund and State Street’s similar products are both designed as compliant tools that meet the above categories of reserve assets.
Why did Fidelity and State Street launch stablecoin reserve management products around the same time?
According to CoinDesk’s analysis, the stablecoin market currently has a size of about $320 billion. After the GENIUS Act takes effect, stablecoin reserve assets must be invested in highly liquid instruments, creating an opportunity for traditional asset managers to provide compliant reserve management services. An industry forecast cited by State Street estimates that by 2030, the stablecoin market size could reach between $1.9 trillion and $4 trillion, driving corresponding demand for reserve asset management.
How does Fidelity Reserve Digital Fund differ from a typical money market fund?
According to reports, the Fidelity Reserve Digital Fund is designed specifically for stablecoin issuers and institutional investors, meeting the GENIUS Act’s specific reserve asset requirements. Its investment targets are limited to highly liquid instruments such as U.S. Treasury bills with maturities within 93 days. Its function is to provide a compliant asset management channel for stablecoin reserves, rather than being aimed at general retail investors.
