Wall Street · CoinDesk
Fidelity joins Wall Street's race to manage stablecoin reserves
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Fidelity Investments is the latest Wall Street firm seeking a role in one of the fastest-growing corners of digital assets: managing the reserves that back stablecoins.
Key facts
- In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024
- Stablecoins, digital tokens pegged to assets such as the U.S. dollar, have grown into a roughly $320 billion market and are widely used for trading, payments and cross-border transfers
- While Fidelity's announcement focused on reserve management, State Street framed its launch as part of a broader push into tokenized finance through partnerships with crypto firms such as Anchorage
- The GENIUS Act, signed into law last year, established the first federal framework for payment stablecoins in the United States
Summary
Fidelity Investments is launching the Fidelity Reserves Digital Fund, a money market fund aimed at managing reserves for stablecoin issuers and institutional investors under the new GENIUS Act, on Thursday. The move follows State Street’s debut of a similar stablecoin-reserve money market fund, highlighting intensifying competition among traditional asset managers for a market that could reach trillions of dollars. The GENIUS Act requires payment stablecoin issuers to hold reserves in cash, short-term U.S. Treasuries and qualifying government money market funds, creating new demand for regulated vehicles like Fidelity’s and State Street’s offerings.