State Street launches a stablecoin fund in accordance with the new GENIUS Act
The investment division of one of the largest banking holdings in the United States, State Street, has officially introduced 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 with digital assets.
The key feature of the fund is its full compliance with the requirements of the U.S. GENIUS Act, which came into effect in July 2025. This regulatory act introduces clear rules for managing the reserves backing "stablecoins." Now, stablecoin issuers can use money market funds like this one to back their tokens while adhering to the new stringent standards.
The first participants in the structure are State Street Bank and Trust Company and the crypto bank Anchorage Digital. Ye-Xin Hung, head of State Street Investment Management, noted that the GENIUS Act has created a clear legal framework for investing reserves. According to her, the new product combines State Street's decades of experience in liquidity management with modern digital asset infrastructure.
Anchorage Digital emphasized that the quality of reserve management is a critical factor in transforming stablecoins into a foundational element of financial infrastructure. This statement carries particular weight amid analyst forecasts: by 2030, the volume of stablecoin issuance could reach $1.9–4 trillion, driven by widespread institutional adoption. Such growth will inevitably increase demand for transparent and regulated backing mechanisms, and money market funds like this one will become a key tool.
Earlier, in May, State Street, in partnership with Galaxy, launched the SWEEP fund — a tool 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 the new legislation.
My expert analysis: The launch of the State Street Stablecoin Reserves Money Market Fund is not just another product, but a clear signal to the market. Major traditional financial institutions are beginning to actively adapt to stablecoin regulation, seeing in them not a threat, but enormous growth potential. This is a step toward creating a hybrid financial system where digital assets will be backed by highly liquid and regulated instruments.