State Street adapts to the GENIUS Act: a specialized fund for stablecoin issuers has been launched
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, reflecting the growing institutionalization of the digital asset market.
The key feature of the product is its full compliance with the requirements of the U.S. GENIUS Act, which came into effect in July 2025. This regulatory act establishes strict rules for using money markets to back "stablecoins," making the State Street fund a crucial element of the new regulatory ecosystem.
The first investors in the structure were State Street Bank and Trust Company and the crypto bank Anchorage Digital. This is unsurprising: both organizations are actively involved in building infrastructure for digital assets.
Yie-Hsin Hung, head of State Street Investment Management, emphasized that the GENIUS Act has created clear and predictable rules for investing reserves. The new fund combines the company's decades of experience in cash management with modern digital asset infrastructure, allowing stablecoin issuers to comply with legal requirements without losing efficiency.
Anchorage Digital noted that the quality of reserve management is becoming a critical factor in transforming stablecoins from a niche instrument into basic financial infrastructure. Transparency and reliability of backing are what distinguish professional issuers from speculative projects.
Analysts predict that by 2030, the volume of stablecoin issuance will reach $1.9–4 trillion amid widespread institutional adoption. This will inevitably increase demand for transparent backing mechanisms through government money market funds. State Street is clearly aiming to take a leading position in this segment.
Recall that in May, State Street, together with Galaxy, launched the tokenized SWEEP fund — a tool for managing liquidity 24/7 using stablecoins. This confirms the company's strategic course towards integrating traditional financial instruments with blockchain infrastructure.
My analysis: The launch of the State Street Stablecoin Reserves Money Market Fund is not just another product, but a signal that regulatory clarity is beginning to attract the largest players in traditional finance. The GENIUS Act has effectively legalized stablecoins as an asset class, and we will now see a wave of similar instruments from other banks. The key question is whether stablecoin issuers can provide sufficient returns to attract capital under strict regulatory requirements.