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. The product is specifically designed for stablecoin issuers and fully complies with the requirements of the GENIUS Act, which came into effect in July 2025. This regulatory act, for the first time, clearly governs the use of money market instruments to back "stablecoins."
First Participants and Strategy
The first investors in the structure were State Street Bank and Trust Company and the crypto bank Anchorage Digital. As noted by Yee-Sin Hung, head of State Street Investment Management, the GENIUS Act has created transparent rules for reserve backing, and the new product combines decades of cash management experience with digital asset infrastructure. Anchorage Digital emphasized that the quality of reserve management is a critical factor in transforming stablecoins into core financial infrastructure.
Stablecoin Market: Forecasts and Trends
In my assessment, this move is not just a reaction to regulation but a strategic breakthrough. According to analytical data, by 2030, the volume of stablecoin issuance could reach $1.9–4 trillion amid widespread institutional adoption. This will inevitably drive demand for transparent and reliable backing mechanisms through government money market funds, an area where State Street has traditionally been strong.
Recall that back in May, State Street, in partnership with Galaxy, launched the tokenized fund SWEEP — a tool for managing liquidity 24/7 using stablecoins. Now, with the introduction of a specialized fund under the GENIUS Act, the company is strengthening its position in this new segment.
My expert conclusion: The creation of the State Street Stablecoin Reserves Money Market Fund is a signal of market maturity. When traditional giants like State Street begin offering infrastructure solutions for stablecoins, it means that regulation and institutional interest have reached a point of no return. I believe we will see a wave of similar products from other banks in the coming quarters.