Fidelity launches GENIUS-aligned stablecoin reserve fund with $1 million minimum

Fidelity Investments launched the Fidelity Reserves Digital Fund, a government money market fund for stablecoin reserve management that began on June 15 and is aimed at institutional investors, including stablecoin issuers. According to the prospectus, the fund is designed to maximize current income while preserving capital and liquidity, and its shares are expected to be held primarily by one or more stablecoin issuers as all or part of their reserve backing. It invests only in assets permitted under the GENIUS Act, including U.S. Treasury bills, notes and bonds, cash, overnight repurchase agreements, and other compliant government money market funds. The fund has a $1 million minimum initial investment, which Fidelity may waive or reduce, seeks to maintain a stable $1.00 net asset value, and charges a 0.25% management fee.