The Block writes "Fidelity launches GENIUS-aligned money market fund for stablecoin issuers." The article tells us, "Fidelity Investments launched a new government money market fund designed to serve as a vehicle for stablecoin issuers. The Fidelity Reserves Digital Fund (FYMXX) aims to deliver maximum current income while preserving capital and maintaining liquidity, according to the fund's prospectus. Shares are offered to institutional investors, including stablecoin issuers. The money market fund launched on June 15." (Note: For those attending Money Fund Symposium later this week (June 24-26) in Jersey City, we look forward to seeing you! Attendees and Subscribers may access the conference materials via our "Money Fund Symposium 2026 Download Center.")
The Prospectus for FYMXX 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." The article continues, "Fidelity's new fund invests exclusively in eligible reserve assets permitted for stablecoin issuers under the GENIUS Act. These include U.S. Treasury bills, notes and bonds, cash, overnight repurchase agreements, and other government money market funds that are compliant with the stablecoin regulations."
The prospectus for Fidelity Reserves Digital Fund FYMXX states, "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 total annual operating expenses are 0.18% after waivers.
It explains, the fund will be, "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, overnight repurchase agreements fully collateralized by U.S. Treasury bills, notes and bonds, and other registered government money market funds that are compliant with the Guiding and Establishing National Innovation for U.S. Stablecoins Act ('GENIUS Act'). Investing only in eligible reserve assets that payment stablecoin issuers are permitted to maintain under the GENIUS Act and any regulations adopted thereunder."
Discussing "Stablecoin Issuer Reserves Risk," it 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." (For more, see our June 17 Crane Data News, "State Street Stablecoin Reserves Goes Live.")
In other news, ICI recently released its latest monthly "Money Market Fund Holdings" summary, which reviews the aggregate daily and weekly liquid assets, regional exposure, and maturities (WAM and WAL) for Prime and Government money market funds.
It tells us, "The Investment Company Institute (ICI) reports that, as of the final Friday in May, prime money market funds held 45.6 percent of their portfolios in daily liquid assets and 62.5 percent in weekly liquid assets, while government money market funds held 73.5 percent of their portfolios in daily liquid assets and 85.9 percent in weekly liquid assets." Prime DLA was down from 45.8% in April, and Prime WLA was up from 62.3%. Govt MMFs' DLA rose from 71.6% and Govt WLA was up from 83.9% for the previous month.
ICI explains, "At the end of May, prime funds had a weighted average maturity (WAM) of 41 days and a weighted average life (WAL) of 61 days. Average WAMs and WALs are asset-weighted. Government money market funds had a WAM of 43 days and a WAL of 96 days." Prime WAMs and WALs were both up from the previous month, WAMs were 3 days longer and WALs were 2 days longer. Govt WAMs and WALs were both down from the previous month, WAMs were 1 day shorter and WALs were 2 days shorter.
Regarding Holdings by Region of Issuer, the release tells us, "Prime money market funds’ holdings attributable to the Americas rose from $763.06 billion in April to $767.14 billion in May. Government money market funds’ holdings attributable to the Americas rose from $5,799.64 billion in April to $5,967.80 billion in May." The Prime Money Market Funds by Region of Issuer table shows Americas-related holdings at $767.1 billion, or 62.8%; Asia and Pacific at $164.9 billion, or 13.5%; Europe at $276.0 billion, or 22.6%; and, Other (including Supranational) at $13.7 billion, or 1.2%. The Government Money Market Funds by Region of Issuer table shows Americas at $5.968 trillion, or 92.0%; Asia and Pacific at $113.5 or 1.8%; Europe at $374.8 billion, 5.8%, and Other (Including Supranational) at $28.3 billion, or 0.4%.
Finally, the Investment Company Institute also published, "Retirement Assets Total $47.6 Trillion in First Quarter 2026," which includes data tables showing that money market funds held in retirement accounts rose to $1.018 trillion (up from $1.016 trillion) in the latest quarter, accounting for 13% of the total $7.772 trillion in money funds. MMFs represent just 7.0% of the total $14.7 trillion of mutual funds in retirement accounts.
A release says, "Total US retirement assets were $47.6 trillion as of March 31, 2026, down 2.5% from December 2025. Retirement assets accounted for 34 percent of all household financial assets in the United States at the end of March 2026. Assets in individual retirement accounts (IRAs) totaled $18.2 trillion at the end of the first quarter of 2026, a decrease of 2.9 percent from the end of the fourth quarter of 2025."
It continues, "Defined contribution (DC) plan assets were $13.8 trillion at the end of the first quarter, down 2.7 percent from December 31, 2025. Government defined benefit (DB) plans—including federal, state, and local government plans -- held $10.0 trillion in assets as of the end of March 2026, a 1.0 percent decrease from the end of December 2025. Private-sector DB plans held $3.0 trillion in assets at the end of the first quarter of 2026, and annuity reserves outside of retirement accounts accounted for another $2.6 trillion."
The ICI tables show money funds accounting for $774 billion, or 11%, of the $7.308 trillion in IRA mutual fund assets and $244 billion, or 3%, of the $7.152 trillion in defined contribution plan holdings. Money funds in 401k plans totaled $163 billion, or 3% of the $5.676 trillion of mutual funds in 401k's.
