Fidelity joins Wall Street’s race to manage stablecoin reserves
Following State Street, Fidelity is targeting reserve assets that underpin the expanding stablecoin market.
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Summary
- Fidelity 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.
