State Street launches a fund for stablecoin issuers in accordance with the GENIUS Act
The investment division of the State Street holding company has introduced a new money market fund — the State Street Stablecoin Reserves Money Market Fund. This instrument is specifically designed for stablecoin issuers and fully complies with the requirements of the U.S. GENIUS Act, which came into effect in July 2025.
The GENIUS Act establishes clear rules for using money markets to back stablecoin reserves. The first participants in the fund are State Street Bank and Trust Company and the crypto bank Anchorage Digital. Head of State Street Investment Management, Ye-Xin Hung, emphasized that the law has created a clear regulatory framework, and the new product combines the company's long-standing experience in cash management with digital asset infrastructure.
Anchorage Digital noted that the quality of reserve management is a critical factor in transforming stablecoins into foundational financial infrastructure. This is particularly important against the backdrop of analyst forecasts, which suggest that by 2030, the volume of stablecoin issuance could reach $1.9–4 trillion due to institutional adoption.
Market growth will inevitably increase demand for transparent collateral mechanisms through government money market funds. Earlier, in May, State Street, together with Galaxy, launched the tokenized SWEEP fund on Solana — a tool for managing liquidity 24/7 using stablecoins.
Expert opinion: The launch of the State Street fund is a logical step amid tightening regulations. The GENIUS Act sets high standards for reserves, and major players like State Street gain a competitive advantage by offering institutional issuers reliable and compliant solutions. Without such instruments, the mass adoption of stablecoins would involve excessive risks for traditional financial institutions.