Fidelity launches Reserves Digital Fund for stablecoins

Fidelity launched the Reserves Digital Fund on June 19, 2026. The fund is a money market product aimed at permitted payment stablecoin issuers, targeting a stable $1.00 net asset value and charging a 0.18% annual expense ratio.

The fund is structured to meet the GENIUS Act reserve-composition requirements for permitted payment stablecoins. It holds U.S. government securities and other short-term instruments that qualify under the Office of the Comptroller of the Currency’s liquidity framework. The fund is built to support the redemption and reserve accounting features stablecoin issuers must demonstrate under the law.

Fidelity designed the fund’s stable $1.00 NAV target so issuers can match reserves to token supply without NAV fluctuations affecting 1:1 accounting. The 0.18% fee is below the roughly 0.20%–0.35% range charged by many institutional money market funds.

GENIUS Act rules include a three-tier liquidity standard: at least 10% of outstanding stablecoins must be redeemable the same business day, 30% within five business days, and 60% in standard reserve assets such as government securities. The Reserves Digital Fund is intended to address the 60% standard-reserve tier while providing liquidity features for shorter-term redemptions.

State Street introduced its SSCXX product on June 17, 2026. The two launches occurred ahead of the July 18 federal final rules deadline and give licensed U.S. stablecoin issuers multiple purpose-built institutional options for reserve management.

Fidelity Investment Management oversees about $5.4 trillion in assets. Fidelity Digital Assets has provided institutional custody for Bitcoin and Ethereum since 2018 and launched spot Bitcoin ETFs in 2024. The new fund expands the firm’s institutional services into the reserve-management layer for stablecoins.

The product is available to any GENIUS Act–licensed permitted payment stablecoin issuer operating in the United States, including incumbent issuers and entrants that began operating in 2026. Pricing and existing institutional relationships are likely to be key factors for issuers choosing between reserve-management providers.

The Reserves Digital Fund constitutes a second specialist institutional money market option for stablecoin reserves on the market, offering an alternative to adapting general-purpose money market funds to meet the new statutory requirements.