State Street launches a stablecoin fund under the GENIUS Act: a new reserve standard
The investment division of financial giant State Street has launched 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 effect in July 2025.
The GENIUS Act establishes clear regulatory frameworks for using money market instruments as collateral for "stablecoins." This creates the necessary legal certainty for major players looking to enter the digital asset segment.
The fund's first investors were State Street Bank and Trust Company and crypto bank Anchorage Digital. According to the head of State Street Investment Management, Ye-Sing Hung, 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 becoming a critically important factor for transforming stablecoins into the basic financial infrastructure of the global economy.
Analysts predict that by 2030, the volume of stablecoin issuance will reach $1.9–4 trillion amid active institutional adoption. This will inevitably increase demand for transparent and regulated collateral mechanisms through government money market funds.
Recall that back in May, State Street, together with Galaxy, launched the tokenized SWEEP fund — an instrument for round-the-clock liquidity management using stablecoins. The new fund is a logical continuation of this strategy, but now with a focus on compliance with strict regulatory requirements.
Expert opinion: The launch of the State Street Stablecoin Reserves Money Market Fund is not just another product, but a signal that traditional financial institutions are beginning to perceive stablecoins as a full-fledged asset class. The regulatory clarity provided by the GENIUS Act opens the door for a massive influx of institutional capital. If the forecasts for market growth to $4 trillion come true, we will witness a fundamental transformation of monetary circulation.