THE $GENIE The law, signed into law last year, established the first federal framework for stablecoin payments in the United States. Among other requirements, issues must hold cash reserves, short-term Treasury securities, and certain state money market funds.
The legislation has created the opportunity for traditional asset managers to offer regulated vehicles that stablecoin issues can use to manage these reserves while generating yield.
Fidelity’s fund will invest in U.S. Treasury bills, notes and bonds with maturities of 93 days or less, cash, overnight repurchase agreements backed by Treasury bills and other legally compliant government money market funds.
“Fidelity has a long history in the bond and money markets, which puts us in a unique position to offer a money market fund for stablecoin issuances that is consistent with the new $GENIE“Legislative legislation,” Robin Foley, Fidelity’s head of fixed income, said in a statement.
While Fidelity’s announcement focused on reserve management, State Street framed its launch as part of a broader push into tokenized finance through partnerships with crypto companies such as Anchorage Digital and products designed for on-chain liquidity management.
