State Street launches a fund for stablecoin issuers in accordance with the GENIUS Act
The investment division of the State Street holding company has introduced 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 U.S. GENIUS Act, which came into effect in July 2025. The law clearly regulates the use of money markets to back "stablecoins," and State Street is the first among major traditional players to offer an institutional solution in this niche.
The fund's first investors were State Street Bank and Trust Company and the crypto bank Anchorage Digital. Head of State Street Investment Management, Ye-Sin Hung, emphasized that the GENIUS Act has created transparent rules for investing reserves, and the new product combines the company's decades of experience in cash management with modern digital asset infrastructure. Anchorage Digital noted that the quality of reserve management is a critical factor in transforming stablecoins into basic financial infrastructure.
In my estimation, State Street's move is not just the launch of another fund, but a signal that traditional finance is beginning to actively integrate into the digital currency ecosystem. Stablecoins are ceasing to be a niche instrument and are becoming part of global liquidity.
Analysts predict that by 2030, the volume of stablecoin issuance will reach $1.9–4 trillion amid institutional adoption. This will inevitably increase demand for transparent backing mechanisms through government money market funds, similar to the one launched by State Street.
Recall that in May, State Street, together with Galaxy, already launched the SWEEP fund — an instrument for managing liquidity 24/7 using stablecoins. The new fund logically complements this lineup, creating a full-fledged infrastructure for issuers.
My view: The GENIUS Act sets clear standards, and State Street demonstrates how major players can adapt to new realities. In the coming years, we will see an avalanche-like growth of such products, and those who enter the market now will gain a strategic advantage.