State Street launches a reserve fund for stablecoins under the GENIUS Act
The investment division of the giant State Street has launched a new instrument on the market — the State Street Stablecoin Reserves Money Market Fund. The product is specifically designed for stablecoin issuers, who can now allocate reserves in strict compliance with the requirements of the U.S. GENIUS Act.
Let me remind you that the GENIUS Act came into force in July 2025 and established clear regulatory frameworks for backing "stablecoins" with money market assets. The State Street fund fully complies with these rules, making it attractive to institutional players seeking flawless compliance.
The first investors in the structure were State Street Bank and Trust Company, as well as the crypto bank Anchorage Digital. Head of State Street Investment Management, Ye-Sin Hung, emphasized that the new product combines the company's long-standing experience in cash management with modern digital asset infrastructure. Anchorage Digital, in turn, noted that the quality of reserve management is a critical factor in transforming stablecoins into basic financial infrastructure.
According to my estimates, demand for such instruments will only grow. Analysts predict that by 2030, the volume of stablecoin issuance could reach $1.9–4 trillion amid active institutional adoption. This will inevitably increase the need for transparent and regulated collateral mechanisms through government money market funds.
Notably, back in May, State Street, together with Galaxy, launched the tokenized SWEEP fund, which allows for 24/7 liquidity management using stablecoins. It is clear that the company is consistently expanding its presence in the digital asset segment, and the new fund is just another step in this direction.
My view: State Street's actions are a clear signal to the market: regulated stablecoins are becoming mainstream. Issuers that fail to ensure reserve transparency risk losing the trust of institutions. The GENIUS Act has not just created rules — it has set a standard that will now define the development of the entire industry.