State Street launches a stablecoin fund under GENIUS Act regulation
State Street's investment division has launched a new money market fund — the State Street Stablecoin Reserves Money Market Fund, specifically designed for stablecoin issuers. This instrument has been created in strict compliance with the requirements of the U.S. GENIUS Act, which came into effect in July 2025 and regulates the use of money markets to back "stablecoins."
The first investors in the fund were State Street Bank and Trust Company and the crypto bank Anchorage Digital. State Street Investment Management head Yie-Hsin Hung emphasized that the GENIUS Act established clear rules for reserve investments, allowing the company to combine its decades of experience in cash management with digital asset infrastructure. Anchorage Digital noted that the quality of reserve management is critically important for transforming stablecoins into basic financial infrastructure.
This move is a direct consequence of growing institutional interest in stablecoins. According to my forecasts, by 2030, the volume of stablecoin issuance will reach $1.9–4 trillion, which will sharply increase demand for transparent collateral mechanisms through government money market funds. Earlier, in May, State Street, together with Galaxy, launched the SWEEP fund — a tool for managing liquidity 24/7 using stablecoins.
From my perspective, the emergence of products like the Stablecoin Reserves Money Market Fund is not just an adaptation to new rules, but a strategic step toward legitimizing stablecoins as a full-fledged element of the global financial system. Institutional players such as State Street are beginning to actively build infrastructure that will make "stablecoins" not just a speculative instrument, but a foundation for everyday transactions.