State Street launches a stablecoin reserve fund in accordance with the GENIUS Act
The investment division of the State Street holding company has introduced a new money market fund — the State Street Stablecoin Reserves Money Market Fund. This instrument was specifically designed for stablecoin issuers and fully complies with the requirements of the U.S. GENIUS Act, which came into force in July 2025. This regulatory act establishes clear rules 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 has created a transparent regulatory environment for investing reserves, and 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 a critical factor in transforming stablecoins into basic financial infrastructure.
According to analyst forecasts, the volume of stablecoin issuance could reach $1.9–4 trillion by 2030 amid active institutional adoption. This, in turn, will significantly increase demand for transparent backing mechanisms through government money market funds. Earlier, in May, State Street, together with Galaxy, launched the SWEEP fund — a tool for managing liquidity 24/7 using stablecoins.
My expertise: The launch of the State Street Stablecoin Reserves Money Market Fund is not just another product, but a clear signal that traditional financial giants are beginning to actively integrate into the digital asset ecosystem under the protection of regulatory frameworks. The GENIUS Act has become a catalyst that transforms stablecoins from a niche instrument into a full-fledged element of the global financial system. I believe that in the coming years, we will see an avalanche-like growth of such structures, which will strengthen institutional trust in cryptocurrencies.