State Street launches a fund for stablecoin issuers — a product born under the GENIUS Act
The investment division of financial giant State Street has introduced a new money market fund — the State Street Stablecoin Reserves Money Market Fund. This instrument is specifically designed for stablecoin issuers, immediately capturing market attention.
The key feature of the fund is its full compliance with the requirements of the U.S. GENIUS Act, which came into effect in July 2025. This regulatory act establishes strict rules for using money markets to back "stablecoins," and State Street decided not just to adapt but to become a pioneer in creating infrastructure for the new regulatory standards.
The first investors in the structure were State Street Bank and Trust Company and the crypto bank Anchorage Digital. Both players are heavyweights in their respective segments, indicating high confidence in the product.
Yie-Hsin Hung, head of State Street Investment Management, emphasized that the GENIUS Act has created clear rules of the game for reserve investing. According to her, the new product organically combines the company's decades of experience in cash management with cutting-edge digital asset infrastructure. Anchorage Digital added that the quality of reserve management is becoming a critical factor for transforming stablecoins into a fundamental element of the financial system.
My forecasts are being confirmed: analysts expect that by 2030, the volume of stablecoin issuance will reach $1.9–4 trillion amid institutional adoption. This will inevitably boost demand for transparent and regulated backing mechanisms — exactly like the State Street fund. Interestingly, earlier in May, State Street, together with Galaxy, launched the tokenized SWEEP fund for 24/7 liquidity management using stablecoins. The new product is a logical continuation of this strategy.
My comment: The launch of the State Street Stablecoin Reserves Money Market Fund is not just another product but a signal to the market that traditional finance is no longer ignoring cryptocurrencies but is actively integrating them into its ecosystem. The GENIUS Act served as a catalyst, but the real value lies in building trust in stablecoins through institutional standards. If growth rates persist, by 2030 we will see not just $2–4 trillion but a fundamental restructuring of money markets.