State Street launches a fund for stablecoin issuers under the GENIUS Act
The investment division of the giant State Street has launched a new money market fund — the State Street Stablecoin Reserves Money Market Fund. This instrument, as I anticipated, is a direct response to the tightening of stablecoin regulation in the United States. The fund is specifically designed for "stablecoin" issuers who now require transparent and legally compliant reserve mechanisms.
The key feature is full compliance with the requirements of the GENIUS Act, which came into force in July 2025. This regulatory act, I recall, establishes strict standards for stablecoin reserve backing, limiting the use of money market instruments. The first investors in the structure were State Street Bank and Trust Company and the crypto bank Anchorage Digital, confirming a high level of trust in the product from both traditional and crypto-oriented institutions.
Head of State Street Investment Management, Ye-Sing Hung, rightly noted that the GENIUS Act has created clear rules of the game. The new fund combines decades of cash management experience with digital asset infrastructure, offering issuers a reliable and regulated tool for holding reserves. Anchorage Digital emphasized that the quality of reserve management is a fundamental factor for transforming stablecoins into basic financial infrastructure. It is hard to disagree with this.
Analyst forecasts are impressive: by 2030, the volume of stablecoin issuance could reach $1.9–4 trillion amid institutional adoption. This will inevitably increase demand for transparent backing mechanisms through government money market funds. Earlier, in May, State Street, together with Galaxy, launched the SWEEP fund for 24/7 liquidity management using stablecoins. The new product logically complements this ecosystem.
My professional opinion: The launch of the State Street Stablecoin Reserves Money Market Fund is not just a reaction to regulation, but a strategic step that solidifies the status of stablecoins as a full-fledged financial instrument. Traditional giants like State Street are no longer just observing the crypto market — they are actively building its infrastructure. This is a signal for all market participants: the "Wild West" era for stablecoins is coming to an end.