Fidelity enters stablecoin reserve management race

Fidelity Investments is launching the Fidelity Reserves Digital Fund, a money market fund designed to manage reserves for stablecoin issuers and institutional investors. This move follows State Street's similar product launch, signaling increased competition among traditional asset managers for the rapidly growing stablecoin market. The new fund complies with the recently enacted GENIUS Act, which mandates that payment stablecoin issuers hold reserves in cash, short-term Treasuries, and qualifying government money market funds. This legislation creates a significant opportunity for regulated financial vehicles to manage the trillions of dollars projected for the stablecoin sector by 2030.