State Street launches a reserve fund for stablecoin issuers in accordance with the GENIUS Act
The investment division of financial giant State Street has launched a new money market fund — 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 fund fully complies with the requirements of the U.S. GENIUS Act, which came into effect in July 2025. This regulatory act establishes clear rules for using money markets to back the reserves of "stablecoins." The first participants in the structure were State Street Bank and Trust Company and the crypto bank Anchorage Digital.
Yie-Hsin Hung, head of State Street Investment Management, emphasized that the GENIUS Act has created a clear regulatory framework for investing stablecoin reserves. The new product combines State Street's decades of experience in liquidity management with modern digital asset infrastructure.
Anchorage Digital noted that the quality of reserve management is a critical factor in transforming stablecoins into a foundational element of the global financial infrastructure. Without reliable and transparent backing mechanisms, trust in this asset class will remain limited.
Analysts predict that by 2030, the volume of stablecoin issuance will reach $1.9-4 trillion amid active institutional adoption. This will create enormous demand for transparent and regulated instruments for deploying reserves, such as government money market funds.
It is worth noting that in May, State Street, together with Galaxy, already launched the tokenized SWEEP fund, designed for 24/7 liquidity management using stablecoins. This confirms the company's strategic direction toward integrating traditional financial instruments with blockchain infrastructure.
Expert opinion: The launch of the State Street Stablecoin Reserves Money Market Fund is an important signal of market maturity. The emergence of a major traditional asset manager offering a specialized product for stablecoin issuers indicates that regulation is beginning to work in favor of the industry. If the GENIUS Act truly creates predictable conditions, we could witness explosive growth in the "stablecoin" market in the coming years. However, the key challenge remains ensuring sufficient liquidity and transparency of reserves to avoid repeating scenarios similar to the UST collapse.