State Street launches a fund for stablecoin issuers in accordance with the GENIUS Act
The investment division of financial giant State Street has introduced an innovative money market fund, the State Street Stablecoin Reserves Money Market Fund, focused exclusively on stablecoin issuers. This move is a direct consequence of the adoption of the GENIUS Act in the United States, which came into force in July 2025 and established clear regulatory frameworks for backing digital currencies.
The GENIUS Act, signed by President Donald Trump, fundamentally changes the rules of the game for the stablecoin market. It requires that reserves backing "stable coins" be held in highly liquid and transparent instruments, such as government money market funds. State Street's new fund fully complies with these requirements, offering issuers a reliable mechanism for storing reserves.
The first investors in the structure were State Street Bank and Trust Company and crypto bank Anchorage Digital. As noted by Yie-Hsin Hung, head of State Street Investment Management, the GENIUS Act created clear rules for investing reserves, and the new product combines the company's decades of experience in cash management with cutting-edge digital asset infrastructure. Anchorage Digital emphasized that the quality of reserve management is a critical factor in transforming stablecoins into foundational financial infrastructure.
In my assessment, this move by State Street is not merely a reaction to regulatory changes, but a strategic step aimed at capturing a share of the rapidly growing market. Analyst forecasts indicate that by 2030, the volume of stablecoin issuance could reach $1.9–4 trillion amid institutional adoption. This will inevitably increase demand for transparent and reliable backing mechanisms, such as the presented fund.
It is also worth recalling that in May of this year, State Street, together with Galaxy, launched the SWEEP fund—a tool for managing liquidity 24/7 using stablecoins. Thus, the giant is consistently strengthening its position in the digital asset sector, creating infrastructure that could become a benchmark for the entire industry.
My expert opinion: The launch of the State Street Stablecoin Reserves Money Market Fund is a landmark event that signals the maturity of the stablecoin market. I expect other major financial institutions to follow this example, and within the next two years, we will see market consolidation around a few key reserve fund providers. This will increase trust in stablecoins from traditional investors and regulators, which, in turn, will accelerate their integration into the global financial system.