State Street launches a fund for stablecoin issuers in accordance with the GENIUS Act
The investment division of financial giant State Street is launching a new instrument on the market — the State Street Stablecoin Reserves Money Market Fund. This product is specifically designed for stablecoin issuers and fully complies with the requirements of the U.S. GENIUS Act, which came into effect in July 2025.
Structure and First Participants
The fund is focused on backing "stablecoin" reserves through government money markets — exactly as mandated by the new regulatory act. The first investors in the structure are State Street Bank and Trust Company and crypto bank Anchorage Digital. This confirms the growing interest of traditional financial institutions in digital assets.
Head of State Street Investment Management, Ye-Sin Hung, emphasized that 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 modern digital asset infrastructure. Anchorage Digital noted that the quality of reserve management is a key factor in transforming stablecoins into foundational financial infrastructure.
Market Prospects
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 and reliable backing mechanisms, such as government money market funds. State Street's launch is a logical step in this direction.
Recall that in May, State Street, together with Galaxy, already launched the tokenized SWEEP fund for 24/7 liquidity management using stablecoins. The new product complements this ecosystem by providing issuers with a secure tool for reserving.
My analysis: The emergence of structured products like the Stablecoin Reserves Money Market Fund is not just a reaction to regulation, but a signal of market maturity. When players like State Street enter the stablecoin market with their own solutions, it strengthens institutional investor confidence and accelerates the legitimization of digital assets within the traditional financial system.