Two of Wall Street's biggest names entered the stablecoin reserve market within 24 hours of each other. State Street launched its fund on June 16; Fidelity followed on June 17. Asset managers with combined AUM in the tens of trillions don't move this quickly by coincidence.
The catalyst is the GENIUS Act, a U.S. law enacted in 2025 that requires payment stablecoin issuers to hold reserves only in approved instruments — cash, short-term U.S. Treasury securities maturing within 93 days, or qualifying government money market funds. That last category is exactly what both firms are now selling.
Fidelity's product is called the Fidelity Reserves Digital Fund. It holds Treasury bills, notes, and bonds with maturities under 93 days, overnight repurchase agreements backed by government securities, and other compliant money market funds. "Fidelity has a longstanding history in fixed income and money markets, making us uniquely positioned to offer a money market fund for stablecoin issuers that is compliant with the new GENIUS Act legislation," said Robin Foley, the firm's head of fixed income.
The stablecoin sector currently sits at around $320 billion — capital that issuers like Tether and Circle have largely managed in-house. Industry forecasts project that figure climbing to $1.9 trillion–$4 trillion by 2030 as stablecoins push into payments and corporate finance at scale.
For stablecoin issuers, the shift is structural. GENIUS Act compliance means reserve management can no longer be informal. Delegating that function to a firm like Fidelity solves both the regulatory optics and the operational complexity in one move. The only question now is which major asset manager enters next — and how fast.
