State Street launches a specialized fund for stablecoin issuers in accordance with the GENIUS Act
The investment division of financial giant State Street has launched a new money market fund — the State Street Stablecoin Reserves Money Market Fund. This instrument is purpose-built to meet the needs of stablecoin issuers, reflecting the growing institutionalization of the cryptocurrency market.
The key feature of the fund is its full compliance with the requirements of the U.S. GENIUS Act, which came into force in July 2025. This regulatory act establishes strict standards for the use of money market instruments as reserve backing for "stablecoins," critically enhancing the transparency and reliability of issuance.
The first investors in the structure were State Street Bank and Trust Company and crypto bank Anchorage Digital. This landmark partnership demonstrates the convergence of traditional finance and digital assets.
Head of State Street Investment Management Yie-Hsin Hung emphasized that the GENIUS Act has created clear and predictable rules for investing reserves. According to her, the new product seamlessly combines the company's decades of experience in liquidity management with cutting-edge digital asset infrastructure.
Anchorage Digital noted that the quality of reserve management is a critical factor in transforming stablecoins from a niche instrument into the foundational financial infrastructure of the global economy.
Analyst forecasts are impressive: by 2030, the volume of stablecoin issuance could reach between $1.9 and $4 trillion amid active institutional adoption. This will inevitably drive explosive demand for transparent and regulated backing mechanisms, such as government money market funds.
Earlier, in May, State Street, together with Galaxy, launched the SWEEP fund — an innovative instrument for round-the-clock liquidity management through stablecoins.
My analysis: The launch of the State Street Stablecoin Reserves Money Market Fund is not just another product, but a clear signal to the market. Traditional financial institutions are no longer watching from the sidelines; they are actively building infrastructure for a future where stablecoins become the standard. The GENIUS Act, despite criticism, has effectively legitimized the sector and opened the floodgates for "blue-chip" capital.