State Street launches a fund for stablecoin issuers in accordance with 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 and has already attracted its first institutional investors.
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," marking a significant step in regulating the cryptocurrency industry.
The first participants in the structure are State Street Bank and Trust Company and crypto bank Anchorage Digital. This is a logical move for Anchorage, given its specialization in digital assets and the need for reliable reserves.
Why is this important for the market?
Yie-Hsin Hung, head of State Street Investment Management, emphasized that the GENIUS Act has created transparent rules for investing reserves. The new product combines State Street's decades of experience in cash management with modern digital asset infrastructure. Anchorage Digital noted that the quality of reserve management is a critical factor in transforming stablecoins into foundational financial infrastructure.
In my assessment, this move confirms the trend toward the institutionalization of stablecoins. Analysts predict that by 2030, the issuance volume of "stablecoins" will reach $1.9-4 trillion amid mass adoption by traditional financial institutions. This will inevitably increase demand for transparent backing mechanisms through government money market funds.
As a reminder, back in May, State Street, together with Galaxy, launched the SWEEP fund — a tool for managing liquidity 24/7 using stablecoins. The new fund logically complements this ecosystem by focusing on reserve requirements.
My analysis: The launch of the State Street Stablecoin Reserves Money Market Fund is not just a reaction to regulatory changes, but a strategic move that will strengthen trust in stablecoins among conservative investors. In the coming years, we will see similar products from other major asset management companies, which will ultimately legitimize "stablecoins" as an asset class.