Fidelity fund limits reserves to GENIUS Act assets

Fidelity filed a Form 485APOS for the Reserves Digital Fund, registered under Fidelity Hereford Street Trust and effective June 12, 2026. The filing describes a money market fund offered to institutional clients, including stablecoin issuers.

The fund’s investment policy requires that every holding qualify as an eligible reserve asset under the GENIUS Act and any regulations adopted under it. Permitted assets are U.S. Treasuries with remaining maturities of 93 days or less, cash, overnight repurchase agreements fully collateralized by U.S. Treasuries, and registered government money market funds.

The filing sets a 93-day maturity ceiling for Treasury holdings. Fidelity states the shorter maturity profile is intended to preserve liquidity and support same-day redemptions associated with stablecoin redemptions.

The filing includes a risk disclosure labeled Stablecoin Issuer Reserves Risk. It says fund assets may fluctuate with the creation and redemption of stablecoins and that rapid or unexpected redemption requests are possible. The filing says the fund’s liquidity management is designed for those redemption dynamics rather than typical institutional money market patterns.

The document discloses a potential future share class that would use blockchain technology to record share ownership. The filing says such a share class could enable on-chain access to reserve positions in later iterations.

On fees, the fund shows a gross management fee of 0.25% per year, reduced to a net total annual operating expense of 0.18% after a 0.07% fee waiver and expense reimbursement. The filing lists no distribution, service, or shareholder fees and estimates other expenses at 0.00% for the current fiscal year. Fidelity provides examples: $18 per $10,000 invested annually and $180,000 per $100 million.

Access is limited to institutional investors. The initial purchase minimum is $1 million, though the filing says Fidelity may waive or lower that threshold for qualifying institutional clients. The fund is managed by Fidelity Management and Research Company LLC, with additional sub-advisers, and institutional onboarding is directed to [email protected].

The filing notes the GENIUS Act-only investment mandate and the 93-day maturity ceiling narrow the fund’s investment universe. Fidelity discloses that restriction will result in lower yields compared with funds that can invest across a broader investment-grade universe.

The Reserves Digital Fund filing arrived ahead of the GENIUS Act final rules deadline on July 18, 2026 and is presented in the filing as a reserve product aligned with the Act’s reserve definition.