State Street launches a stablecoin reserve fund in accordance with the GENIUS Act
The investment division of the State Street holding company has launched the State Street Stablecoin Reserves Money Market Fund. This instrument is specifically designed for stablecoin issuers and fully complies with the requirements of the U.S. GENIUS Act, which came into effect in July 2025. The regulatory act establishes clear standards for using money markets to back "stablecoins."
The first investors in the structure were State Street Bank and Trust Company and the crypto bank Anchorage Digital. Ye-Sin Hung, head of State Street Investment Management, noted that the GENIUS Act created clear rules for investing reserves, and the new product combines the company's decades of experience in cash management with digital asset infrastructure. Anchorage Digital emphasized that the quality of reserve management is a critical factor in transforming stablecoins into basic financial infrastructure.
According to analysts' forecasts, by 2030, the volume of stablecoin issuance could reach $1.9–4 trillion amid institutional adoption. This will inevitably increase demand for transparent backing mechanisms through government money market funds. Earlier, in May, State Street and Galaxy launched the SWEEP fund—a tool for managing liquidity 24/7 using stablecoins.
Expert commentary: The launch of this fund is a logical step in the context of regulatory certainty provided by the GENIUS Act. State Street, as one of the world's largest custodians, is effectively legitimizing stablecoins as an asset class for traditional investors. However, the key challenge remains scalability: to meet the projected demand in the trillions of dollars, issuers will have to compete for access to high-quality reserves, which could lead to higher fees and lower yields for end users.