State Street launches a fund for stablecoin issuers in accordance with the GENIUS Act
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 fully complies 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 structure were State Street Bank and Trust Company and the crypto bank Anchorage Digital. According to Ye-Sing Hung, head of State Street Investment Management, the GENIUS Act has created clear rules for investing reserves, and the new product combines the company's decades of experience in cash management with digital asset infrastructure.
Anchorage Digital emphasized that the quality of reserve management is a critical factor in transforming stablecoins into foundational financial infrastructure. This statement underscores the growing role of institutional players in shaping standards for the digital asset market.
Analysts predict that by 2030, the volume of stablecoin issuance will reach $1.9–4 trillion amid institutional adoption. This will inevitably increase demand for transparent backing mechanisms through government money market funds.
As a reminder, in May, State Street, in partnership with Galaxy, launched the SWEEP fund — a tool for managing liquidity 24/7 using stablecoins. Both products demonstrate the company's strategic focus on integrating traditional financial instruments with blockchain technologies.
Expert commentary: The launch of the State Street Stablecoin Reserves Money Market Fund is not just a reaction to regulatory changes, but a signal that major financial institutions are ready to actively participate in building infrastructure for stablecoins. This is a step toward legitimizing the market that will attract even more institutional investors.