State Street launches a fund for stablecoin issuers in accordance with the GENIUS Act
The investment division of the State Street holding company has introduced a new money market fund — the State Street Stablecoin Reserves Money Market Fund. This instrument was specifically designed for stablecoin issuers, reflecting the growing interest of traditional financial giants in digital assets.
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, marking a key step in regulating the crypto industry in the United States.
The first investors in the structure were State Street Bank and Trust Company and the crypto bank Anchorage Digital. This partnership highlights the synergy between traditional banking and digital assets.
Yie-Hsin Hung, head of State Street Investment Management, noted that the GENIUS Act has created a transparent regulatory framework for investing reserves. According to her, the new product 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 critically important for transforming stablecoins into basic financial infrastructure. I fully agree with this view: transparency and reliability of reserves are the foundation of trust in stablecoins.
According to analysts' forecasts, the volume of stablecoin issuance could reach $1.9–4 trillion by 2030 amid institutional adoption. This will undoubtedly increase demand for transparent backing mechanisms through government money market funds.
As a reminder, in May, State Street and Galaxy launched the SWEEP fund — a tool for managing liquidity 24/7 using stablecoins. This is another step toward integrating traditional finance and crypto innovations.
My analysis: The launch of the State Street Stablecoin Reserves Money Market Fund is not just a new product but a signal that regulated stablecoins are becoming mainstream. I expect that in the coming years, we will see a wave of similar initiatives from major banks, which will strengthen the position of digital assets in the global economy.