Fidelity launches GENIUS Act‑compliant stablecoin reserve fund

Fidelity, the asset‑manager with about $7.1 trillion in assets under custody, introduced the Fidelity Reserves Digital Fund (ticker FYMXX). The money‑market fund is built to satisfy the requirements of the U.S. GENIUS Act, which mandates that stablecoin issuers hold reserves in highly liquid, low‑risk assets. FYMXX will invest only in short‑term U.S. Treasury securities (with remaining maturities of 93 days or less), cash, overnight repo agreements fully collateralised by Treasuries and other qualifying government money‑market funds. The fund has a $1 million minimum investment and charges an annual fee of 0.18%, covering all administration and operational costs. By offering a compliant reserve‑backing vehicle, Fidelity aims to capture a share of the growing market for dollar‑pegged stablecoins, joining other Wall Street firms such as State Street that have launched similar products.