State Street launches a reserve fund for stablecoins under the GENIUS Act — a new liquidity standard
The investment division of global financial giant State Street has officially launched 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 key feature of the new fund is its full compliance with the requirements of the U.S. GENIUS Act, which came into effect in July 2025. This regulatory act establishes strict standards for the reserve backing of "stablecoins," defining which assets can be used as collateral and how they must be held.
The first participants in the structure are State Street Bank and Trust Company and the crypto bank Anchorage Digital. This is a strategic move: both organizations possess deep expertise in managing fiat reserves and digital assets, respectively.
Head of State Street Investment Management, Ye-Sin Hung, emphasized that the GENIUS Act has created transparent and predictable rules for investing stablecoin reserves. The new product combines State Street's many years of experience in managing cash liquidity with modern digital asset infrastructure, providing issuers with a reliable and regulated instrument for deploying reserves.
Anchorage Digital noted that the quality of reserve management is a critical factor in transforming stablecoins from a niche instrument into basic financial infrastructure. Transparency and compliance with regulatory requirements are what distinguish mature projects from speculative ones.
Analytical forecasts point to explosive market growth: by 2030, the volume of stablecoin issuance could reach $1.9–4 trillion. This is driven by mass institutional adoption and the need for highly liquid, regulated instruments to back these assets. Demand for transparent mechanisms through government money market funds will only increase.
As a reminder, in May, State Street, together with Galaxy, launched the tokenized SWEEP fund for managing liquidity 24/7 using stablecoins. The new product logically complements this ecosystem.
My opinion: The launch of the State Street Stablecoin Reserves Money Market Fund is not just another financial product, but an important signal of market maturity. When giants like State Street begin building infrastructure specifically for stablecoins, it means that "stablecoins" have finally moved from the category of experimental assets to the rank of systemically important financial instruments. Investors should closely monitor the development of this area — this is where standards for the entire industry are being formed.