Fidelity joins Wall Street's race to manage stablecoin reserves

MarketsFidelity joins Wall Street's race to manage stablecoin reservesFollowing State Street, Fidelity is targeting reserve assets that underpin the expanding stablecoin market.By Helene Braun, AI Boost|Edited by Nikhilesh De Jun 17, 2026, 8:30 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX iconX (Twitter)LinkedInFacebookEmailMake preferred on SummaryShowFidelity Investments is launching the Fidelity Reserves Digital Fund, a money market fund aimed at managing reserves for stablecoin issuers and institutional investors under the new GENIUS Act, on Thursday.The move follows State Street’s debut of a similar stablecoin-reserve money market fund, highlighting intensifying competition among traditional asset managers for a market that could reach trillions of dollars.The GENIUS Act requires payment stablecoin issuers to hold reserves in cash, short-term U.S. Treasuries and qualifying government money market funds, creating new demand for regulated vehicles like Fidelity’s and State Street’s offerings.Fidelity Investments is the latest Wall Street firm seeking a role in one of the fastest-growing corners of digital assets: managing the reserves that back stablecoins.The asset manager is launching the Fidelity Reserves Digital Fund, a money market fund designed for stablecoin issuers and institutional investors under the reserve requirements established by the recently enacted GENIUS Act, on Thursday.The launch comes just days after State Street unveiled a similar product, the State Street Stablecoin Reserves Money Market Fund, underscoring how traditional financial firms are increasingly competing for a market that could swell into the trillions of dollars if stablecoins become a larger part of the global financial system.Stablecoins — digital tokens pegged to assets such as the U.S. dollar — have grown into a roughly $320 billion market and are widely used for trading, payments and cross-border transfers. Industry forecasts cited by State Street p…

Fidelity joins Wall Street's race to manage stablecoin reserves

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