Traditional giants enter the scene, the stablecoin reserve race is about to change.

Fidelity Investments will launch the Fidelity Reserve Digital Fund, targeting stablecoin issuers and institutions, investing in U.S. Treasury securities, cash, and government money market instruments such as repurchase agreements backed by government bonds with maturity dates ≤93 days, in accordance with the T+0 reserve requirements. It will be released in parallel with similar products from State Street, reflecting the growing competition among traditional financial institutions in the stablecoin reserve market. The stablecoin market is about $320 billion; with increased institutional adoption, it could expand to $1.9–4 trillion by 2030.