The management company Fidelity has launched the Fidelity Reserves Digital Fund - a money market fund for Stablecoin and institutional investors. The product was created in strict compliance with the recently enacted $GENIUS Act and was a response to a similar launch from State Street, which marked the beginning of traditional fingigans' competition for a market that could reach $1.9-4 trillion by 2030.

The $GENIUS Act requires Stablecoin issuers to hold reserves in highly liquid instruments. The new Fidelity fund will invest in US Treasury bills and bonds with a maturity of up to 93 days, cash and overnight repo. According to the head of Fidelity Bonds, Robin Foley, the company’s long-standing experience in debt markets makes it a unique player in this niche. While Fidelity focuses on reserve management, State Street positions its product as part of a broader strategy to develop tokenized finance and partnerships with crypto firms such as Anchorage Digital.