State Street launches a stablecoin fund in accordance with the GENIUS Act: a new reserve standard
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 was specifically designed for stablecoin issuers and has already attracted the attention of key market players.
The fund fully complies with the requirements of the U.S. GENIUS Act, which came into force in July 2025. This regulation establishes clear rules for using money markets to back "stablecoins," which is critical for legitimizing this asset class.
The first investors in the structure were State Street Bank and Trust Company and the crypto bank Anchorage Digital. This is a landmark event, as Anchorage Digital is one of the first licensed digital banks in the U.S., underscoring the institutional level of the new product.
Yee-Sin Hung, Head of State Street Investment Management, noted that the GENIUS Act has created transparent rules for investing stablecoin reserves. According to her, the new product organically 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 becoming a fundamental factor for transforming stablecoins into basic financial infrastructure. Without reliable backing mechanisms, trust in "stablecoins" will remain in question.
Analysts predict that by 2030, the volume of stablecoin issuance will reach $1.9–4 trillion amid widespread institutional adoption. This will inevitably increase demand for transparent and regulated backing mechanisms through government money market funds.
Recall that in May, State Street, together with Galaxy, launched the SWEEP fund — a tool for managing liquidity 24/7 using stablecoins. This demonstrates the giant's consistent strategy of integrating digital assets into traditional financial products.
My analysis: The launch of the State Street Stablecoin Reserves Money Market Fund is not just another product, but a signal that the largest financial institutions are preparing for the mass adoption of stablecoins. The GENIUS Act creates a legal framework, but it is instruments like this fund that will provide real liquidity and trust. I expect other banks to follow State Street's lead, which will accelerate the consolidation of the stablecoin market and enhance its role in the global financial system.