State Street launches new fund for stablecoin issuers under GENIUS Act
The investment division of financial giant State Street has introduced a new money market fund — the State Street Stablecoin Reserves Money Market Fund. This instrument is specifically designed for stablecoin issuers seeking to comply with strict regulatory requirements.
The key feature of the fund is its full compliance with the U.S. GENIUS Act, which came into force in July 2025. This regulatory act establishes clear rules for the use of money market instruments to back "stablecoins," making the new product critical for industry participants.
The first investors in the structure were State Street Bank and Trust Company and crypto bank Anchorage Digital. Head of State Street Investment Management Ye-Sing Hung noted that the GENIUS Act has created transparent frameworks for investing reserves, and the new product combines the company's decades of experience in cash management with cutting-edge digital asset infrastructure.
At Anchorage Digital, it was emphasized that the quality of reserve management is a fundamental factor in transforming stablecoins into basic financial infrastructure. Without reliable backing mechanisms, trust in these assets will remain questionable.
Analysts predict that by 2030, the volume of stablecoin issuance will reach $1.9–4 trillion amid active institutional adoption. This will inevitably increase demand for transparent and regulated backing mechanisms through government money market funds, similar to State Street's new offering.
Recall that in May, State Street, together with Galaxy, already launched the tokenized SWEEP fund — a tool for managing liquidity around the clock using stablecoins. This demonstrates the company's consistent strategy of integrating traditional finance with digital assets.
My comment: The launch of this fund is a clear signal that regulation is not slowing down but, on the contrary, accelerating the institutional adoption of stablecoins. The GENIUS Act creates the "rules of the game," and giants like State Street are the first to adapt, gaining a competitive advantage. This is an important step toward legitimizing stablecoins as a full-fledged asset class.