State Street launches a reserve fund for stablecoins in accordance with the GENIUS Act
State Street's investment division has introduced a new money market fund — the State Street Stablecoin Reserves Money Market Fund. This instrument is purposefully designed for stablecoin issuers, reflecting the growing institutionalization of the digital asset sector.
Compliance with the GENIUS Act Regulatory Framework
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 "stablecoins," which is critical for legitimizing stablecoins as a financial instrument.
The first investors in the structure were State Street Bank and Trust Company and the crypto bank Anchorage Digital. This partnership demonstrates the integration of traditional banking with digital infrastructure.
Yie-Hsin Hung, Head of State Street Investment Management, noted that the GENIUS Act has created transparent rules for investing reserves. The new product combines the company's decades of experience in cash management with cutting-edge digital asset infrastructure.
Key Importance for the Market
Anchorage Digital emphasized that the quality of reserve management is a critical factor in transforming stablecoins into basic financial infrastructure. Without reliable backing mechanisms, trust in these assets will remain questionable.
According to my forecasts, by 2030, the volume of stablecoin issuance will reach $1.9–4 trillion amid institutional adoption. This will inevitably increase demand for transparent backing mechanisms through government money market funds, such as the one presented by State Street.
Recall that in May, State Street, together with Galaxy, launched the SWEEP fund — a tool for managing liquidity 24/7 using stablecoins. This confirms the company's strategic course toward integrating digital assets into traditional finance.
Expert Analysis: The launch of the State Street Stablecoin Reserves Money Market Fund is not just another product but a signal of the maturity of the stablecoin market. I expect that in the next 12–18 months, we will see similar initiatives from other major banks, accelerating the adoption of digital currencies by central banks and regulators worldwide.