State Street launches a stablecoin fund under the new GENIUS Act
The investment division of the giant State Street has launched a new money market fund — the State Street Stablecoin Reserves Money Market Fund. This instrument is purpose-built for stablecoin issuers, and its launch is a direct consequence of the GENIUS Act coming into force in July 2025.
The GENIUS Act established clear regulatory frameworks for the reserve backing of "stablecoins," and State Street is promptly adapting its infrastructure to the new requirements. The fund guarantees compliance with these standards, offering issuers a safe and regulated instrument for holding reserves.
The first clients of the structure were State Street Bank and Trust Company and the crypto bank Anchorage Digital. This demonstrates a high level of trust in the product from both the traditional and crypto-oriented financial sectors.
Why is this important for the market?
State Street Investment Management head Ye-Xin Hung emphasized that the GENIUS Act has created a predictable environment for investing stablecoin reserves. The new fund combines decades of cash management experience with modern digital asset infrastructure. Anchorage Digital noted that the quality of reserve management is a critical factor in transforming stablecoins into a fundamental element of the financial system.
Analyst forecasts are impressive: by 2030, the volume of stablecoin issuance could reach between $1.9 and $4 trillion amid widespread institutional adoption. This will create enormous demand for transparent and reliable collateral mechanisms through government money market funds.
Earlier, in May, State Street, together with Galaxy, launched the tokenized SWEEP fund, which allows for 24/7 liquidity management using stablecoins. The new product logically complements this lineup, solidifying State Street's position as a key player at the intersection of traditional finance and digital assets.
My conclusion: The launch of this fund is a clear signal that major institutional players view stablecoin regulation not as a threat, but as an opportunity. The GENIUS Act not only legalizes the market but creates the infrastructure for its explosive growth. State Street, as always, is one step ahead.