Fidelity launches GENIUS-aligned reserve fund, 0.25% fee

Fidelity launched the Fidelity Reserves Digital Fund (FYMXX) on June 15. The fund is a government money market fund built to hold reserve assets for stablecoin issuers and carries a 0.25% management fee.

The fund is structured for institutional investors. Fidelity expects shares to be held mainly by one or more stablecoin issuers as part or all of the reserves backing tokens. The fund’s prospectus says it seeks to generate current income while preserving capital, maintaining liquidity and keeping a stable net asset value of $1 per share.

FYMXX invests only in reserve assets permitted under the GENIUS Act, including U.S. Treasury bills, notes and bonds, cash, overnight repurchase agreements and other government money market funds that meet the statute’s requirements. The prospectus lists a $1 million minimum initial investment; Fidelity may waive or reduce that amount.

The prospectus notes fund assets may change with stablecoin minting and redemptions. Those flows can move quickly and may be amplified during periods of market stress or heightened volatility.

Fidelity’s fund joins other institutional products aimed at stablecoin reserves. State Street introduced a similar GENIUS-aligned fund this week and BlackRock launched comparable products last year. Total stablecoin capitalization has risen above $315 billion since the GENIUS Act was passed.

FYMXX began trading on June 15 under the ticker FYMXX. The fund was designed around the GENIUS Act reserve rules to provide a regulated, liquid option for holding assets that back dollar-pegged tokens.