State Street launches a stablecoin fund under the new GENIUS Act
State Street's investment division has announced the launch of the State Street Stablecoin Reserves Money Market Fund. This instrument is specifically designed for stablecoin issuers and created in accordance with the requirements of the recently enacted U.S. GENIUS Act.
As a reminder, the GENIUS Act came into effect in July 2025. This regulatory act establishes clear rules for using money markets to back "stablecoins." The first investors in the new fund are State Street Bank and Trust Company and the crypto bank Anchorage Digital.
Yie-Hsin Hung, head of State Street Investment Management, noted that the GENIUS Act has created a transparent legal environment for investing stablecoin reserves. The new product combines the company's decades of experience in cash management with modern digital asset infrastructure.
Anchorage Digital emphasized the critical importance of reserve management quality for transforming stablecoins into basic financial infrastructure. Without reliable backing mechanisms, trust in these assets will remain questionable.
In my estimation, stablecoin issuance volume could reach $1.9–4 trillion by 2030. Institutional adoption will inevitably increase demand for transparent collateral instruments through government money market funds. This is a logical step in the evolution of digital assets.
Earlier, in May, State Street, together with Galaxy, launched the SWEEP fund — an instrument for round-the-clock liquidity management using stablecoins. The new fund is a logical continuation of this strategy.
My opinion: The emergence of such instruments is not just a trend but a necessity for a mature stablecoin market. The regulatory clarity brought by the GENIUS Act opens the door for traditional financial giants, and State Street demonstrates how digital assets can be safely integrated into classic infrastructure.