State Street launches a new fund in accordance with the GENIUS Act: a breakthrough for stablecoins
The investment division of giant State Street has launched a new money market fund — the State Street Stablecoin Reserves Money Market Fund. This instrument was specifically designed for stablecoin issuers, highlighting the growing integration of traditional finance and digital assets.
The fund is fully compliant with the requirements of the U.S. GENIUS Act, which came into effect in July 2025. This regulatory act establishes strict standards for the use of money markets as collateral for stablecoins. The first investors in the structure were State Street Bank and Trust Company and the crypto bank Anchorage Digital, demonstrating trust from both traditional and crypto-oriented institutions.
Head of State Street Investment Management, Ye-Sin Hung, emphasized that the GENIUS Act has created clear and transparent rules for investing reserves. The new product combines the company's many years of experience in cash management with modern digital asset infrastructure, ensuring maximum reliability and liquidity for stablecoin issuers.
Anchorage Digital noted that the quality of reserve management is becoming a critically important factor for transforming stablecoins into basic financial infrastructure. According to analyst forecasts, by 2030, the volume of stablecoin issuance could reach between $1.9 and $4 trillion amid widespread institutional adoption. This will inevitably increase demand for transparent and regulated collateral mechanisms, such as government money market funds.
Recall that in May, State Street, together with Galaxy, already launched the SWEEP fund — a tool for managing liquidity 24/7 using stablecoins. The new fund is another step towards creating a full-fledged, regulated ecosystem for digital currencies.
Expert commentary: The launch of the State Street Stablecoin Reserves Money Market Fund is not just another product, but a signal that regulatory clarity is beginning to bear fruit. I expect that in the coming years we will see an avalanche of similar initiatives from the largest banks and asset management companies, which will radically change the stablecoin landscape and strengthen their status as a legitimate financial instrument.