Fidelity Investments has launched a money market fund designed to hold the reserves behind stablecoins, joining a crowded field of Wall Street giants racing to capture the reserve-management business the GENIUS Act created.
The Fidelity Reserves Digital Fund, trading under the ticker FYMXX, launched on June 15 as a U.S. Treasury and government money market fund. Per its prospectus, the fund’s shares are “expected to be held primarily by one or more stablecoin issuers” as part of the reserve assets backing the tokens they issue.
Inside the Fund
The fund invests exclusively in assets the GENIUS Act permits as stablecoin reserves: cash, U.S. Treasury bills, notes, and bonds maturing in 93 days or less, overnight repurchase agreements backed by Treasuries, and other government money market funds that comply with the law.
It targets the standard money market objective of maximum income with capital preservation and liquidity, and posted a 1-day yield of 3.46% as of June 18, days after launch. Robin Foley, Fidelity’s Head of Fixed Income, tied the product to the firm’s long track record in fixed income and cash management.
Why the GENIUS Act Created This Business
The opening is a direct product of regulation. The GENIUS Act, the first federal framework for payment stablecoins, requires issuers to hold 1:1 reserves in high-quality liquid assets, cash, short-dated Treasuries, and qualifying government money market funds, and bars them from paying yield to token holders.
That combination is what makes reserve management attractive: rather than building the operation in-house, an issuer can outsource it to a compliant fund that handles the liquidity, disclosure, and custody requirements, while the issuer earns the yield on its float that the law forbids it from passing to customers.
For asset managers, the appeal is a large, sticky pool of conservative assets to run. For issuers, it is compliance and operational simplicity in one wrapper.
A Crowded Race
Fidelity is a heavyweight, but a late one. BNY moved first among the giants, launching the BNY Dreyfus Stablecoin Reserves Fund as it positioned itself to be the “plumber” for the stablecoin market in November 2025. Morgan Stanley followed with its Stablecoin Reserves Portfolio (MSNXX) in April, and State Street launched a GENIUS-aligned fund seeded by Anchorage Digital, drawing roughly $121 million. BlackRock and Goldman Sachs have rolled out comparable products.
The prize justifies the crowd. The stablecoin market stands at roughly $320 billion, with Tether’s USDT accounting for about 59%, and State Street projects it could reach between $1.9 trillion and $4 trillion by 2030. Whoever manages the cash and Treasuries sitting behind those tokens stands to run a fast-growing slice of that float.
Fidelity Plays Both Sides
What sets Fidelity’s entry apart is how it fits a broader, full-stack push into digital assets. The firm’s Fidelity Digital Assets arm earlier this year introduced the Fidelity Digital Dollar (FIDD), an enterprise stablecoin of its own, and Fidelity was among the crypto firms granted a national trust bank charter by the Office of the Comptroller of the Currency in late 2025. With FYMXX, Fidelity now sits on both sides of the stablecoin economy, issuing a token and managing the reserves that back tokens, including potentially those of competitors.
That positioning captures the logic of the post-GENIUS landscape: the law turned stablecoin reserves into an asset-management contest, and the firms with the deepest fixed-income and custody operations are best placed to win it. Fidelity’s arrival, alongside nearly every major incumbent, signals that running the cash behind tokenized dollars has quickly become table stakes for Wall Street, not a niche experiment, but a business the largest managers cannot afford to cede.
Also Read: Why is Bitcoin and Crypto Market Down Today?
