Fidelity launches GENIUS Act stablecoin reserve money market fund

Fidelity Investments launched the Fidelity Reserves Digital Fund on June 18, a stablecoin reserve money market fund designed to comply with the GENIUS Act. The fund targets $1.00 NAV and charges a 0.18% net expense ratio. The Fidelity Reserves Digital Fund invests in short-term U.S. Treasuries (maturities of 93 days or less), plus cash, overnight Treasury-backed repos, and qualifying government money market funds. The structure is built around GENIUS Act stablecoin reserve requirements for high-quality, liquid assets. The launch follows similar products from major Wall Street firms, including State Street (this week), as well as BlackRock, Goldman Sachs, and JPMorgan. Fidelity said it is its fifth dedicated product for stablecoin reserve management. For crypto traders, the direct price effect on crypto is likely indirect. If GENIUS Act-driven reserves grow toward an estimated ~$4T, demand for T-bills and overnight repos could rise and potentially lift short-end money market rates. Near term, traders should expect incremental positioning and pricing effects, while monitoring liquidity concentration risk if reserve holdings become concentrated in a small number of money market funds.