State Street launches a fund for stablecoin issuers in accordance with the GENIUS Act
State Street's investment division has announced the launch of the State Street Stablecoin Reserves Money Market Fund. This instrument was specifically designed for stablecoin issuers, highlighting the growing integration of traditional financial mechanisms with digital assets.
The fund fully complies with the requirements of the US GENIUS Act, which came into effect in July 2025. This regulatory act establishes clear rules for using money markets to back "stablecoins," marking an important step in legitimizing the cryptocurrency industry. The first investors in the structure were State Street Bank and Trust Company and the crypto bank Anchorage Digital, demonstrating trust from both classical and digital financial institutions.
Key aspects and expert perspective
Head of State Street Investment Management Ye-Xin Hung noted that the GENIUS Act has created a transparent regulatory environment for investing reserves. The new product combines the company's decades of experience in cash management with modern digital asset infrastructure. Anchorage Digital emphasized that the quality of reserve management is critical for transforming stablecoins into basic financial infrastructure.
According to analyst forecasts, by 2030 the volume of stablecoin issuance could reach $1.9–4 trillion amid institutional adoption. This will significantly increase demand for transparent collateral mechanisms through government money market funds. Previously, in May, State Street together with Galaxy launched the SWEEP fund — a tool for managing liquidity 24/7 using stablecoins.
From my perspective, State Street's initiative is a logical continuation of the trend toward tokenization of traditional assets. The GENIUS Act legislative framework not only reduces regulatory risks but also paves the way for mass adoption of stablecoins in corporate and government finance. However, the key challenge remains ensuring sufficient liquidity and transparency of reserves, which directly affects trust in these instruments.