State Street launches a fund for stablecoin issuers under 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 was specifically designed for stablecoin issuers and fully complies with the requirements of the recently passed U.S. GENIUS Act, which came into effect in July 2025.
This regulatory act establishes clear rules for using money markets to back the reserves of "stablecoins." The first investors in the new fund were State Street Bank and Trust Company, as well as the crypto bank Anchorage Digital. This indicates a high level of trust in the instrument from both traditional and digital financial institutions.
Yie-Hsin Hung, head of State Street Investment Management, emphasized that the GENIUS Act has created transparent regulatory frameworks for investing stablecoin reserves. The new product combines State Street's decades of experience in cash management with modern digital asset infrastructure. Anchorage Digital, in turn, noted that the quality of reserve management is a critical factor for transforming stablecoins into foundational financial infrastructure.
Analysts predict that by 2030, the volume of stablecoin issuance could reach between $1.9 and $4 trillion amid active institutional adoption. This will undoubtedly increase demand for transparent and reliable backing mechanisms through government money market funds.
As a reminder, in May, State Street, together with Galaxy, already launched the tokenized SWEEP fund — a tool for managing liquidity 24/7 using stablecoins. This confirms the company's strategic direction toward integrating traditional financial products with blockchain technologies.
Analytical commentary from Cryptalist: The launch of the State Street Stablecoin Reserves Money Market Fund is not just another product, but a signal that regulated stablecoins are becoming a full-fledged asset class. I expect that in the next 12-18 months, we will see an avalanche-like growth of similar instruments from the largest banks and asset management companies. This will strengthen trust in stablecoins and accelerate their integration into the global financial system.