State Street launches a reserve fund for stablecoins in accordance with the 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 was specifically designed for stablecoin issuers to provide a reliable and regulated reserve placement.
The fund fully complies with the requirements of the U.S. GENIUS Act, which came into effect in July 2025. This regulatory act establishes clear rules for using money market instruments to back "stablecoins," paving the way for a more transparent and institutional infrastructure for digital assets.
The first investors in the structure were State Street Bank and Trust Company and the crypto bank Anchorage Digital. This demonstrates that even traditional financial institutions are ready to actively participate in shaping the new stablecoin market.
Yee-Sin Hung, Head of State Street Investment Management, noted that the GENIUS Act has created clear and predictable rules of the game for investing reserves. According to her, the new product combines the company's many years of experience in cash management with cutting-edge digital asset infrastructure. Anchorage Digital emphasized that the quality of reserve management is a critically important factor for transforming stablecoins into a core financial infrastructure.
According to my forecasts, by 2030, the volume of stablecoin issuance could reach $1.9–4 trillion amid accelerated institutional adoption. This will inevitably lead to a sharp increase in demand for transparent and liquid collateral mechanisms, such as government money market funds.
Recall that earlier 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 finance with the world of digital assets.
Expert Commentary: The launch of such a fund is not just a reaction to regulation, but a signal of market maturity. When giants like State Street begin offering specialized products for stablecoin issuers, it means that "stablecoins" are ceasing to be a niche instrument and are becoming part of the global financial system. Investors should closely monitor this trend — it could radically change the liquidity landscape.