Fidelity Investments is the 5th money fund manager to launch a Stablecoin Reserves money market fund, following BlackRock's Circle Treasury Reserves, and Stablecoin Reserves offerings from State Street, Goldman Sachs and BNY. A Form N-1A Registration Statement tells us, "Fidelity Reserves Digital Fund seeks to obtain as high a level of current income as is consistent with the preservation of capital and liquidity.." (Note: Thank you to those who attended and supported our Bond Fund Symposium last week in Boston! Attendees and Crane Data subscribers may access the conference materials via our Bond Fund Symposium 2026 Download Center.)
It Principal Investment Strategies include: "Investing only in U.S. Treasury bills, notes and bonds with a remaining maturity of, or issued with a maturity of, 93 days or less, cash, and overnight repurchase agreements fully collateralized by U.S. Treasury bills, notes and bonds, and other registered government money market funds; Investing only in eligible reserve assets that payment stablecoin issuers are permitted to maintain under the Guiding and Establishing National Innovation for U.S. Stablecoins Act ('GENIUS Act') and any regulations adopted thereunder; and, Investing in compliance with industry-standard regulatory requirements for money market funds for the quality, maturity, liquidity, and diversification of investments."
Fidelity says, "Fund shares are expected to be held primarily by one or more stablecoin issuers as all or a portion of the reserve assets that back the stablecoins issued to their customers. Fund assets are therefore expected to fluctuate depending on the creation of additional stablecoins or the redemption of outstanding stablecoins. Stablecoins may face periods of uncertainty or volatility that could result in rapid or unexpected redemption requests. Large redemption requests could negatively affect the fund's liquidity, net asset value or portfolio management. Because the fund intends to invest only in certain eligible reserve assets that payment stablecoin issuers are permitted to maintain under the GENIUS Act, the fund's yield may be lower than other money market funds that are permitted to invest in a wider universe of investments."
They write, "Shares are offered to institutional investors, including stablecoin issuers. The fund may offer additional share classes in the future that employ blockchain technology to maintain a record of share ownership."
The filing tells us, "Fidelity Reserves Digital Fund seeks to obtain as high a level of current income as is consistent with the preservation of capital and liquidity.... The Adviser invests only in U.S. Treasury bills, notes and bonds with a remaining maturity of, or issued with a maturity of, 93 days or less, cash, and overnight repurchase agreements fully collateralized by U.S. Treasury bills, notes and bonds, and other registered government money market funds. The fund invests only in eligible reserve assets that payment stablecoin issuers are permitted to maintain under the GENIUS Act and any regulations adopted thereunder. In buying and selling securities for the fund, the Adviser complies with industry-standard regulatory requirements for money market funds regarding the quality, maturity, liquidity, and diversification of the fund's investments. The Adviser stresses maintaining a stable $1.00 share price, liquidity, and income."
Discussing "Stablecoin Issuer Reserves Risk," Fidelity writes, "Fund shares are expected to be held primarily by one or more stablecoin issuers as all or a portion of the reserve assets that back the stablecoins issued to their customers. Stablecoins generally are a type of cryptocurrency designed to maintain a stable value by pegging their value to another asset, such as a fiat currency like the U.S. dollar, and stablecoin holders generally are permitted to redeem their stablecoins for a fixed amount of value. The fund does not invest in stablecoins or stablecoin issuers; however, the fund's assets are expected to fluctuate depending on the creation (minting) of additional stablecoins or the redemption (burning) of outstanding stablecoins."
They continue, "Stablecoins or other digital assets that stablecoins may be used to purchase or sell may face periods of uncertainty or volatility that could result in rapid or unexpected redemption requests to the fund. Such uncertainty or volatility may result from events that are not specifically related to a stablecoin issuer, such as changes in general market conditions, economic, technological or legal trends or changes to the laws or regulation of stablecoins, or events that are specifically related to a particular stablecoin issuer, such as uncertainty about the stablecoin issuer's ability to maintain a consistent peg between the stablecoins issued to its customers and another asset. Large redemption requests could negatively affect the fund's liquidity, net asset value or portfolio management. Because the fund intends to invest only in certain eligible reserve assets that payment stablecoin issuers are permitted to maintain under the GENIUS Act, the fund’s yield may be lower than other money market funds that are permitted to invest in a wider universe of investments."
We wrote in January, "Fidelity to Launch Digital Dollar Stablecoin" (1/29/26), "Fidelity announced the launch of a new stablecoin and says it will also manage the stablecoin's reserves. Their press release titled, "Fidelity Investments to Expand Digital Asset Investment Lineup with Stablecoin Launch: Fidelity Digital Dollar (FIDD)," tells us, "Fidelity Investments is set to launch its first stablecoin, Fidelity Digital Dollar (FIDD), which will be issued by Fidelity Digital Assets, National Association, and available for retail and institutional investors in the coming weeks."
For more on Stablecoin Reserve funds, see these Crane Data News stories: "'Dec. MFI: MMFs Hit $8.0T, Top 10; JPM '26 Outlook; Stablecoin Reserves" (12/5/25), "'State Street Files for Stablecoin Reserves MMF; BNY's Stephanie Pierce" (11/19/25), "BNY Stablecoin Reserves Goes Live; ICI: Assets Eke Out Record $7.5T" (11/14/25),"BNY's Vince on Q3 Call: Money Market Evolution, Dreyfus, Stablecoins" (10/22/25), "BlackRock Breaks $1 Trillion in Money Funds; Offers Stablecoin Reserve" (10/17/25), "Sept. MFI: Assets Break $7.6T; Stablecoin Reserves; JPM on Offshore MFs" (9/8/25), "BNY Dreyfus to Launch Stablecoin Reserves Fund; Joins Goldman, Circle" (8/20) and "Goldman Files to Launch Stablecoin Reserves Fund; Circle Q2 Earnings" (8/13/25).
