State Street launches a stablecoin fund in accordance with the GENIUS Act: a new reserve standard
The investment division of financial giant State Street has launched the State Street Stablecoin Reserves Money Market Fund. This instrument was developed exclusively for stablecoin issuers, highlighting the growing integration of traditional finance into the world of digital assets.
The fund fully complies with the requirements of the U.S. GENIUS Act, which came into force in July 2025. This regulatory act establishes strict rules for using money markets as collateral for stablecoins, which is critical for increasing institutional investor confidence in them.
The first investors in the structure were State Street Bank and Trust Company and crypto bank Anchorage Digital. This is a logical step, given that Anchorage Digital is one of the leaders in custodial services for digital assets.
State Street Investment Management CEO Yie-Hsin Hung emphasized that the GENIUS Act has created clear and transparent rules for investing reserves. According to her, 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 decisive factor in transforming stablecoins from a speculative instrument into basic financial infrastructure. This statement reflects a general trend toward raising transparency standards in the industry.
According to my forecasts, by 2030, the volume of stablecoin issuance could reach $1.9–4 trillion amid widespread institutional adoption. This will inevitably increase demand for transparent collateral mechanisms through government money market funds, and State Street is clearly aiming to take a leading position in this segment.
Let me remind you that in May, State Street, together with Galaxy, launched the SWEEP fund — a tool for managing liquidity 24/7 using stablecoins. This is further confirmation that traditional finance is actively exploring the cryptocurrency space.
Analyst's comment: The launch of the fund to meet the requirements of the GENIUS Act is not just a reaction to regulation, but a strategic move. I see this as the beginning of a new era when stablecoins will cease to be a "gray area" and become a full-fledged tool for managing corporate liquidity. The market is heading toward consolidation around major players, and State Street is making the right bet.