State Street launches a fund for stablecoin issuers under the new 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 seeking to comply with strict regulatory requirements.
The key feature of the fund is its full compliance with the provisions of the U.S. GENIUS Act, which came into force in July 2025. This regulatory act establishes clear rules for using money market instruments to back stablecoin reserves, which is critical for the legitimacy of the entire sector.
The first participants in the structure were State Street Bank and Trust Company and crypto bank Anchorage Digital. This indicates a high level of institutional trust in the product and its ability to integrate traditional financial mechanisms with digital assets.
Head of State Street Investment Management, Ye-Sin Hung, emphasized that the GENIUS Act has created a transparent and predictable regulatory environment. According to her, the new product combines the company's decades of experience in liquidity management with modern digital asset infrastructure, offering issuers a reliable and regulated instrument.
Anchorage Digital noted that the quality of reserve management is a fundamental factor in transforming stablecoins from a niche instrument into basic financial infrastructure. The partnership with State Street is a step in this direction.
Analysts predict that by 2030, the volume of stablecoin issuance could reach $1.9–4 trillion amid growing institutional adoption. This will inevitably increase demand for transparent and liquid backing mechanisms through government money market funds, such as State Street's new product.
Earlier, in May, State Street, together with Galaxy, launched the SWEEP fund — an instrument for round-the-clock liquidity management using stablecoins. The new fund complements this lineup, focusing on reserves.
Cryptalist analyst's opinion: The launch of the State Street Stablecoin Reserves Money Market Fund is not just another product, but a clear signal to the market that regulated stablecoins are becoming a mainstream financial instrument. Given State Street's scale and the projected market growth, such initiatives will set standards for the entire industry, displacing less transparent backing schemes.