State Street launches a fund for stablecoin issuers under the new GENIUS Act
The investment division of financial giant State Street has launched a new money market fund — the State Street Stablecoin Reserves Money Market Fund. This instrument is specifically designed for stablecoin issuers and fully complies with the requirements of the recently passed U.S. GENIUS Act, which came into effect in July 2025.
The GENIUS Act establishes clear regulatory frameworks for using money markets as collateral for "stablecoins." This creates a predictable and transparent environment for issuers, who can now invest reserves in regulated financial instruments such as government money market funds.
The first investors in the new fund were State Street Bank and Trust Company and crypto bank Anchorage Digital. Head of State Street Investment Management Ye-Sin Hung noted that the GENIUS Act provided clear rules of the game, and the new product combines the company's decades of experience in cash management with modern digital asset infrastructure.
Anchorage Digital emphasized that the quality of reserve management is a critical factor for transforming stablecoins into basic financial infrastructure. Without reliable collateral mechanisms, trust in these assets will remain in question.
Analysts predict that by 2030, the volume of stablecoin issuance will reach $1.9–4 trillion amid growing institutional adoption. This, in turn, will significantly increase demand for transparent and regulated collateral instruments, such as government money market funds.
Recall that in May, State Street, together with Galaxy, launched the tokenized SWEEP fund, designed for 24/7 liquidity management using stablecoins. The new fund is a logical continuation of this strategy.
My analysis: State Street's move is a classic example of how traditional financial institutions are adapting to new realities. The GENIUS Act not only legalized stablecoins but also created an infrastructural "safety cushion" for them. Given the projected market growth, such funds will become a mandatory element for all major issuers seeking to comply with regulatory standards.