State Street launches a fund for stablecoin issuers in accordance with the GENIUS Act
The investment division of the giant State Street has announced the launch of a new money market fund — the State Street Stablecoin Reserves Money Market Fund. This instrument is purposefully designed for stablecoin issuers and fully complies with the requirements of the U.S. GENIUS Act, which came into effect in July 2025. The regulatory act establishes clear rules for using money markets to back "stablecoins," and the new fund is a direct response to these regulatory changes.
The first investors in the structure were State Street Bank and Trust Company and the crypto bank Anchorage Digital. According to Ye-Sing Hung, head of State Street Investment Management, the GENIUS Act created transparent and predictable rules for investing reserves, allowing the company to offer the market a product that combines years of cash management experience with modern digital asset infrastructure.
Anchorage Digital emphasized that the quality of reserve management is becoming a critical factor in transforming stablecoins into the foundational financial infrastructure of the global economy. Transparency and reliability of backing are exactly what is needed for mass adoption.
According to my estimates, by 2030, the stablecoin market volume could reach $1.9–4 trillion amid growing institutional adoption. This will inevitably increase demand for transparent backing mechanisms through government money market funds. Earlier, in May, State Street, together with Galaxy, launched the SWEEP fund — a tool for managing liquidity 24/7 using stablecoins, confirming the company's strategic course toward integrating traditional finance and digital assets.
My comment: The launch of such a fund is not just a reaction to regulation, but an important step toward legitimizing stablecoins as a full-fledged asset class. If the largest traditional managers begin offering specialized solutions for issuers, it signals market maturity and reduced risks for investors.