State Street launches a reserve fund for stablecoin issuers 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 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. The legislative act established clear rules for using money markets to back "stablecoins."
First Participants and Strategic Significance
The fund's first investors were State Street Bank and Trust Company and crypto bank Anchorage Digital. Head of State Street Investment Management Ye-Sin Hung emphasized that the GENIUS Act created transparent regulatory frameworks for reserve investing. The new product combines State Street's decades of experience in liquidity management with modern digital asset infrastructure. Anchorage Digital noted that the quality of reserve management is a critical factor for transforming stablecoins into foundational financial infrastructure.
Stablecoin Market: Forecasts and Trends
Analysts predict that by 2030, the volume of stablecoin issuance will reach between $1.9 and $4 trillion amid active institutional adoption. This will inevitably drive demand for transparent and reliable backing mechanisms through government money market funds. Earlier, in May, State Street, together with Galaxy, launched the SWEEP fund — an instrument for round-the-clock liquidity management using stablecoins.
My comment: The launch of such a fund is not merely a reaction to regulation but a strategic move that strengthens trust in stablecoins from traditional financial institutions. If market growth forecasts prove accurate, such instruments will become the standard for backing digital currencies.