State Street launches a fund for stablecoin issuers with an eye on the GENIUS Act
The investment division of financial giant State Street has introduced a new money market fund — the State Street Stablecoin Reserves Money Market Fund. This instrument is specifically designed for stablecoin issuers seeking to comply with stringent regulatory requirements.
The fund's key feature is its full compliance with the provisions of the U.S. GENIUS Act, which came into effect in July 2025. This regulatory act establishes clear rules for using money market instruments to back stablecoin reserves, opening up new opportunities for institutional participants.
The first investors in the structure were State Street Bank and Trust Company and crypto bank Anchorage Digital, confirming a high level of trust in the product from both traditional and digital financial institutions.
As noted by Yie-Hsin Hung, head of State Street Investment Management, the GENIUS Act has created a transparent regulatory framework for investing stablecoin reserves. The new product combines the company's decades of experience in cash management with modern digital asset infrastructure, providing issuers with a reliable and regulated mechanism.
Anchorage Digital emphasized that the quality of reserve management is becoming a critical factor in transforming stablecoins into foundational financial infrastructure. Without transparent and compliant instruments, mass adoption of stablecoins would be hindered.
Analysts predict that by 2030, the volume of stablecoin issuance will reach $1.9–4 trillion amid active institutional adoption. This will inevitably lead to increased demand for transparent backing mechanisms through government money market funds.
Recall that in May, State Street, together with Galaxy, already launched the tokenized fund SWEEP — an instrument for managing liquidity 24/7 using stablecoins. The new product logically complements this ecosystem.
My comment: The launch of the State Street Stablecoin Reserves Money Market Fund is not just another financial product, but a clear signal to the market. Traditional giants like State Street are beginning to actively integrate into the stablecoin infrastructure, seeing them not as a speculative instrument but as the future of settlements and liquidity. Given market growth forecasts of up to $4 trillion, competition for high-quality reserve mechanisms will only intensify.