State Street launches a reserve fund for stablecoins in accordance with the GENIUS Act
The investment division of financial giant State Street has introduced a new money market fund — the State Street Stablecoin Reserves Money Market Fund. This instrument is specifically designed for stablecoin issuers and is focused on strict compliance with the requirements of the U.S. GENIUS Act, which came into effect in July 2025.
The GENIUS Act establishes clear regulatory frameworks for using money markets as backing for stablecoins. The State Street fund fully complies with these rules, making it attractive to institutional players seeking transparency and adherence to regulatory standards.
The first investors in the new structure were State Street Bank and Trust Company, as well as crypto bank Anchorage Digital. Head of State Street Investment Management, Ye-Sin Hung, emphasized that the GENIUS Act has created a predictable environment for reserve investments. According to her, the new product combines State Street's long-standing experience in liquidity management with cutting-edge digital asset infrastructure.
Anchorage Digital noted that the quality of reserve management is a key factor in transforming stablecoins into a fundamental element of the global financial infrastructure. This statement underscores the growing role of institutional standards in the crypto industry.
Analysts predict that by 2030, the volume of stablecoin issuance will reach between $1.9 and $4 trillion amid active institutional adoption. Such growth will inevitably increase demand for reliable and transparent backing mechanisms, like the State Street fund, which are based on government money market instruments.
Recall that in May of this year, State Street, together with Galaxy, launched the SWEEP fund — an innovative instrument for round-the-clock liquidity management using stablecoins. This demonstrates the company's strategic direction toward integrating traditional finance with blockchain technologies.
My expert assessment: The launch of the State Street Stablecoin Reserves Money Market Fund is a landmark step, confirming that regulation, rather than its absence, is becoming a driver for the legitimization of stablecoins. The GENIUS Act not only creates rules but opens doors for the largest players in the traditional market, which will significantly accelerate the convergence of fiat and digital assets. Institutional adoption of stablecoins is reaching a new level, and the State Street fund is a vivid example of this.