State Street launches a stablecoin fund in accordance with the GENIUS Act
State Street Corporation's investment division has launched a new money market fund — the State Street Stablecoin Reserves Money Market Fund. This instrument is specifically designed for stablecoin issuers, highlighting the growing integration of traditional finance and digital assets.
The fund fully complies with the requirements of the U.S. GENIUS Act, which came into effect in July 2025. This regulatory act establishes clear rules for using money markets to back stablecoins, which is critical for increasing trust in this asset class.
The first investors in the structure are State Street Bank and Trust Company and crypto bank Anchorage Digital. This is a landmark event, as Anchorage Digital is one of the leading institutional custodians in the crypto space, confirming the seriousness of State Street's intentions in this sector.
Yie-Hsin Hung, head of State Street Investment Management, noted that the GENIUS Act has created clear rules for investing reserves. According to her, the new product combines the company's decades of experience in cash management with modern digital asset infrastructure. Anchorage Digital emphasized that the quality of reserve management is critical for transforming stablecoins into basic financial infrastructure.
According to my forecasts, by 2030, the volume of stablecoin issuance could reach $1.9–4 trillion amid widespread institutional adoption. This will inevitably increase demand for transparent collateral mechanisms through government money market funds. State Street is clearly seeking to take a leading position in this segment, which is a strategically sound move.
Recall that in May, State Street, together with Galaxy, launched the SWEEP fund — a tool for managing liquidity 24/7 using stablecoins. This demonstrates the company's consistent strategy of integrating blockchain solutions into traditional financial products.
My expert opinion: The launch of this fund is not just a reaction to regulatory changes, but a well-thought-out step to capture market share in the rapidly growing stablecoin sector. Given that the GENIUS Act creates legal certainty, we will see an avalanche-like growth of similar products from the largest banks and asset management companies. State Street is currently setting the tone, and this is only the beginning.