State Street launches a stablecoin fund in accordance with the GENIUS Act — a new reserve backing standard
State Street's investment division has launched a new money market fund called the State Street Stablecoin Reserves Money Market Fund. This instrument is specifically designed for stablecoin issuers and has already attracted the attention of the first institutional market participants.
The fund has been developed in strict compliance with the requirements of the U.S. GENIUS Act, which came into force in July 2025. This regulatory act establishes clear rules for using money markets to back "stablecoins," marking an important step in regulating the cryptocurrency industry.
The first investors in the structure were State Street Bank and Trust Company and crypto bank Anchorage Digital. This confirms the growing interest of traditional financial institutions in digital assets.
Why this matters for the stablecoin market
State Street Investment Management head Ye-Sin Hung noted that the GENIUS Act has created clear rules for investing reserves. The new product combines the company's decades of experience in cash management with digital asset infrastructure, which is critical for scaling the market.
Anchorage Digital emphasized that the quality of reserve management is a key factor in transforming stablecoins into basic financial infrastructure. Without reliable backing, trust in "stablecoins" will remain limited.
Forecasts and prospects
According to my estimates, by 2030, the volume of stablecoin issuance could reach $1.9–4 trillion amid active institutional adoption. This will inevitably increase demand for transparent backing mechanisms through government money market funds.
Recall that in May, State Street, together with Galaxy, already launched the SWEEP fund — a tool for managing liquidity 24/7 using stablecoins. Thus, the company is consistently strengthening its position in the digital asset segment.
Expert commentary: The launch of the State Street Stablecoin Reserves Money Market Fund is a signal of market maturity. Regulation through the GENIUS Act creates the necessary legal framework, and the participation of giants like State Street confirms that stablecoins are moving from the category of experimental instruments to the category of standard financial products. I expect that in the next 12–18 months, we will see similar initiatives from other major asset management companies.