State Street launches a stablecoin fund in accordance with the new GENIUS Act
State Street's investment division has announced the launch of a new money market fund — the State Street Stablecoin Reserves Money Market Fund. This instrument is specifically designed for stablecoin issuers and is aligned with the requirements of the U.S. GENIUS Act, which came into effect in July 2025.
The GENIUS Act establishes clear regulatory frameworks for using money markets as collateral for "stablecoins." The first investors in the new fund are State Street Bank and Trust Company and crypto bank Anchorage Digital. This partnership highlights the growing integration of traditional financial institutions with digital assets.
Yee-Sin Hung, head of State Street Investment Management, noted that the GENIUS Act has created transparent rules for reserve investment, allowing the combination of decades of cash management expertise with modern digital asset infrastructure. Anchorage Digital added that the quality of reserve management is critical for transforming stablecoins into foundational financial infrastructure.
In my assessment, this move is a logical response to growing demand from institutional investors. Analysts predict that by 2030, stablecoin issuance volume will reach $1.9–4 trillion amid mass adoption. This, in turn, will increase the need for transparent collateral mechanisms through government money market funds.
Recall that in May, State Street, together with Galaxy, launched the tokenized SWEEP fund — a tool for 24/7 liquidity management using stablecoins. The new product strengthens the company's position in the digital asset segment.
My expert opinion: The launch of the State Street Stablecoin Reserves Money Market Fund is not just a reaction to regulatory changes, but a strategic move that could set a standard for the entire industry. If other major players follow this example, we will see an acceleration in the legitimization of stablecoins as a reliable tool for institutional reserves.