State Street launches a fund for stablecoin issuers in accordance with the GENIUS Act
The investment division of financial giant State Street has introduced a new instrument — the State Street Stablecoin Reserves Money Market Fund. This product is specifically designed to meet the needs of stablecoin issuers operating in the new regulatory environment.
The fund's key feature is its full compliance with the requirements of the U.S. GENIUS Act, which came into effect in July 2025. This regulatory act establishes strict rules for using money market instruments to back "stablecoin" reserves, critically enhancing the transparency and reliability of the entire ecosystem.
The first investors in the structure were State Street Bank and Trust Company and crypto bank Anchorage Digital. This strategic partnership combines traditional banking expertise with advanced digital asset infrastructure.
Yie-Hsin Hung, head of State Street Investment Management, emphasized that the GENIUS Act has created clear and predictable rules for investing stablecoin reserves. In her view, the new product organically combines the company's extensive cash management experience with modern digital asset infrastructure.
Anchorage Digital noted that the quality of reserve management is a critical factor in transforming stablecoins from a niche instrument into basic financial infrastructure. Funds like the one presented provide the necessary level of trust from institutional investors.
Analytical forecasts point to explosive market growth: by 2030, the volume of stablecoin issuance could reach $1.9-4 trillion amid active institutional adoption. This will inevitably increase demand for transparent and regulated backing mechanisms through government money market funds.
It is worth noting that in May, State Street, together with Galaxy, already launched the SWEEP fund — an instrument for round-the-clock liquidity management using stablecoins. The new product logically complements this line, focusing specifically on reserve backing.
Expert 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. Major traditional players like State Street are beginning to actively integrate into the stablecoin infrastructure, seeing it as a strategic growth vector. For stablecoin issuers, this means the emergence of a reliable, regulated, and scalable instrument for managing reserves, which is critically important for their legitimization in the eyes of regulators and institutional investors. The market is moving towards standardization, and this fund sets a new quality standard.