Fidelity has launched FYMXX, a money market fund compliant with the GENIUS Act, targeting stablecoin issuers, as the market reaches $315 billion.
Fidelity Investments has just launched a new government money market fund designed to Vai as an Investment Vehicles for stablecoin issuers. According to the fund's prospectus, the Fidelity Reserves Digital Fund ( FYMXX ) aims to maximize present value while preserving Capital and maintaining liquidation.
The fund's shares are being offered to institutional investors, including stablecoin issuers, and were officially launched on June 15th. The prospectus states that the fund's shares are expected to be primarily held by one or more stablecoin issuers, in the form of all or part of the reserve assets backing the stablecoins issued to their clients.
Fidelity 's new fund invests exclusively in eligible reserve assets permitted for stablecoin issuers under the GENIUS Act, including treasury bills, short-term and long-term U.S. Treasury bonds, cash, overnight repurchase agreements, and other government money market funds compliant with stablecoin regulations.
The fund has a minimum initial investment of $1 million, which may be waived or lowered at the fund's discretion, and aims to maintain a stable net asset value of $1.00 per share, with a management fee of 0.25%. The prospectus also notes that the fund's assets are expected to fluctuate due to the creation of new stablecoins or the redemption of existing stablecoins, particularly during periods of market uncertainty or volatility.
A wave of stablecoin reserve funds from major financial institutions.
Fidelity's latest launch comes amid a wave of investment firms deploying similar products. Earlier this week, State Street launched a money market fund that reserves stablecoins compliant with the GENIUS Act, following similar products launched last year by BNY Mellon, Goldman Sachs, and BlackRock. This trend reflects the rapid growth of the stablecoin market, particularly after the U.S. passed the GENIUS Act.
According to defillama data, the total stablecoin market Capital currently stands at approximately $315 billion, with Tether 's USDT accounting for 59% of the market, reinforcing the growing Vai of traditional financial institutions in providing reserve infrastructure for the crypto asset sector.
