Today Fidelity Investments launched the Fidelity Reserves Digital Fund, a money market fund (MMF) targeting stablecoin issuers. Like most of its competitors, it is a conventional fund compliant with the GENIUS Act, though it may issue a blockchain share class in the future.
The list of dedicated stablecoin reserve funds is getting long. BNY, Goldman Sachs, Federated Hermes, Morgan Stanley, JP Morgan, BlackRock and State Street have all launched new funds, while WisdomTree and Franklin Templeton have adapted existing ones. When State Street launched its fund two days ago, we explored the amounts invested in several of them.
The GENIUS Act limits stablecoin reserve investments in Treasuries to a maturity of 93 days or less, plus cash and repo. With so many funds investing in such a narrow range of assets, the investment management itself is hardly distinctive. Costs are already razor thin, with almost all charging between 0.17% and 0.18% after fee waivers.
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