State Street launches a fund for stablecoin issuers under the new GENIUS Act
The investment division of the 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, who are now required to meet strict reserve requirements.
The fund fully complies with the norms of the U.S. GENIUS Act, which came into force in July 2025. This law, for the first time at the federal level, established clear rules for backing "stablecoins" through money market instruments, fundamentally changing the landscape for issuers.
The first investors in the new fund are State Street Bank and Trust Company and the crypto bank Anchorage Digital — two institutional players setting the tone in the digital assets space. For Anchorage Digital, this is a strategic move: the bank is actively developing infrastructure for storing and managing cryptocurrencies, and integration with a traditional money market fund strengthens trust in stablecoins.
Yie-Hsin Hung, Head of State Street Investment Management, emphasized that the GENIUS Act has created a transparent regulatory environment for investing reserves. The new product combines State Street's decades of experience in cash management with advanced digital asset infrastructure — a hybrid solution that reduces risks for issuers.
Anchorage Digital noted that the quality of reserve management is becoming a critical factor for transforming stablecoins into basic financial infrastructure. Without reliable backing mechanisms, trust in stablecoins will remain fragile.
Analysts predict that by 2030, the volume of stablecoin issuance will reach $1.9–4 trillion amid institutional adoption. This will create enormous demand for transparent and regulated instruments, such as the State Street fund. Interestingly, in May, State Street, together with Galaxy, already launched the tokenized SWEEP fund on Solana for 24/7 liquidity management — showing that the company is systematically entering the digital asset ecosystem.
My expert opinion: The launch of the State Street Stablecoin Reserves Money Market Fund is not just another product, but a signal that traditional financial giants have finally recognized stablecoins as a full-fledged asset class. However, the key challenge remains scaling: by 2030, the market will require trillions of dollars in liquidity, and such funds will need to prove their ability to handle volatility and regulatory changes.