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 specifically designed for stablecoin issuers, highlighting the growing integration of traditional finance and digital assets.
The new fund fully complies with the requirements of the U.S. GENIUS Act, which came into effect in July 2025. This regulatory act establishes clear rules for using money markets to back "stablecoins," significantly enhancing the transparency and reliability of the stablecoin market.
The first investors in the structure were State Street Bank and Trust Company and the crypto bank Anchorage Digital. This partnership demonstrates how traditional banks and cryptocurrency institutions are joining forces to build next-generation infrastructure.
State Street Investment Management head Ye-Xin Hung emphasized that the GENIUS Act has created clear rules for investing reserves. According to her, the new product combines the company's decades of experience in cash management with advanced digital asset infrastructure. Anchorage Digital noted that the quality of reserve management is critical for transforming stablecoins into foundational financial infrastructure.
According to my forecasts, by 2030, the volume of stablecoin issuance could reach $1.9–4 trillion amid active institutional adoption. This will inevitably increase demand for transparent collateral mechanisms through government money market funds, such as State Street's new product.
As a reminder, in May, State Street, together with Galaxy, launched the SWEEP fund — a tool for managing liquidity 24/7 using stablecoins. This is another step toward creating a fully digital financial ecosystem.
Expert opinion: The launch of the State Street Stablecoin Reserves Money Market Fund is not just another product, but a clear signal to the market: regulated stablecoins are becoming an integral part of the global financial system. Given State Street's scale and the support of the GENIUS Act, this move could accelerate the mass adoption of digital currencies among institutional investors. However, the key challenge remains balancing innovation with strict regulatory compliance.