State Street launches a fund for stablecoin issuers in accordance with the GENIUS Act
State Street's investment division has announced the launch of a new money market fund — the State Street Stablecoin Reserves Money Market Fund. This instrument is purpose-built for stablecoin issuers seeking to comply with strict regulatory requirements.
The fund fully complies with the provisions of the U.S. GENIUS Act, which came into effect in July 2025. This regulatory act establishes clear rules for using money market instruments to back "stablecoins," significantly enhancing transparency and reducing risks for market participants.
The first investors in the structure were State Street Bank and Trust Company and the crypto bank Anchorage Digital. This is a landmark step, demonstrating the growing interest of traditional financial giants in the digital asset segment.
Yie-Hsin Hung, Head of State Street Investment Management, emphasized that the GENIUS Act has created a clear regulatory framework for investing stablecoin reserves. According to her, the new product harmoniously combines State Street's decades of experience in liquidity management with modern digital asset infrastructure, providing issuers with a reliable and regulated instrument.
Anchorage Digital noted that the quality of reserve management is a critical factor for transforming stablecoins into basic financial infrastructure. Without such mechanisms, trust in stablecoins from institutional investors would remain limited.
Analysts predict that by 2030, the volume of stablecoin issuance will reach $1.9–4 trillion amid accelerated institutional adoption. This, in turn, will multiply demand for transparent and highly reliable backing instruments, such as government money market funds.
My expert assessment: The launch of the State Street Stablecoin Reserves Money Market Fund is not just another product, but a crucial signal of market maturity. When giants like State Street begin offering specialized solutions for stablecoins, it confirms that "stablecoins" are ceasing to be a niche instrument and are becoming an integral part of the global financial system. Coupled with the recent launch of the tokenized SWEEP fund in partnership with Galaxy, State Street is clearly betting on dominating the digital asset infrastructure.