State Street launches a fund for stablecoin issuers in accordance with the GENIUS Act
State Street's investment division has launched a new money market fund — the State Street Stablecoin Reserves Money Market Fund. This instrument is 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 rules for using money markets to back stablecoins, creating a legal framework for such initiatives. The fund has already attracted its first investors: State Street Bank and Trust Company and crypto bank Anchorage Digital have become the first participants in the structure.
How It Works
State Street Investment Management CEO Yee-Sin Hung emphasized that the GENIUS Act has created transparent rules for investing reserves. The new product combines the company's decades of experience in cash management with modern digital asset infrastructure. Anchorage Digital noted that the quality of reserve management is critically important for transforming stablecoins into core financial infrastructure.
Stablecoin Market: Forecasts
Analysts predict that by 2030, the volume of stablecoin issuance will reach between $1.9 and $4 trillion amid institutional adoption. This, in turn, will 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 around the clock using stablecoins.
My analysis: The launch of the State Street Stablecoin Reserves Money Market Fund is not just another product, but a clear signal of market maturity. Institutional giants are beginning to actively adapt to regulation, and this creates a solid foundation for further growth of the stablecoin sector. If the trend continues, we will see a avalanche-like inflow of capital into such instruments, which will strengthen trust in digital assets from traditional financial structures.