State Street launches a stablecoin reserve fund in accordance with the GENIUS Act
The investment division of financial giant State Street has launched a new instrument on the market — the State Street Stablecoin Reserves Money Market Fund. This product is specifically designed for stablecoin issuers seeking to comply with stringent regulatory standards.
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 the use of money market instruments to back "stablecoins," marking an important step in regulating the crypto-financial ecosystem.
The first investors in the structure were State Street Bank and Trust Company and crypto bank Anchorage Digital. This partnership demonstrates the growing convergence between traditional financial institutions and digital assets.
Head of State Street Investment Management, Ye-Sin Hung, emphasized that the GENIUS Act has created clear and predictable rules for reserve investing. The new product combines State Street's decades of experience in cash management with modern digital asset infrastructure, providing stablecoin issuers with a reliable mechanism for storing and managing reserves.
Anchorage Digital noted that the quality of reserve management is becoming a critical factor in transforming stablecoins from a niche instrument into a foundational financial infrastructure. Transparency and regulatory compliance are key elements of trust from institutional investors.
According to analyst forecasts, the stablecoin market volume could reach between $1.9 and $4 trillion by 2030 amid widespread institutional adoption. This will inevitably increase demand for high-quality, transparent backing mechanisms through government money market funds.
Recall that earlier, in May, State Street, together with Galaxy, launched the SWEEP fund — a tool for managing liquidity 24/7 using stablecoins, confirming the giant's long-term strategy in this area.
My analysis: The launch of this fund is not just a reaction to regulation, but a strategic move that could fundamentally change the stablecoin landscape. State Street, with trillions of dollars under management, is effectively legitimizing the segment and setting standards for all market participants. The only question is how quickly other traditional players will follow this example.