State Street launches a stablecoin fund 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. 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 law establishes clear rules for using money markets to back "stablecoins."
The fund's first investors were State Street Bank and Trust Company and crypto bank Anchorage Digital. Head of State Street Investment Management Yie-Hsin Hung noted that the GENIUS Act has created a transparent regulatory environment for reserve investments. The new product combines the company's decades of experience in liquidity management with modern digital asset infrastructure.
Anchorage Digital emphasized that the quality of reserve management is a critical factor in transforming stablecoins into foundational financial infrastructure. This is especially important amid forecasts that stablecoin issuance could reach $1.9–4 trillion by 2030. Such growth is driven by institutional adoption and will increase demand for transparent collateral mechanisms through government money market funds.
Recall that in May, State Street, together with Galaxy, launched the SWEEP fund — a tool for round-the-clock liquidity management using stablecoins. This demonstrates the holding company's consistent course toward integrating traditional financial products with blockchain technologies.
My expert assessment: The launch of the State Street fund under the auspices of the GENIUS Act is a significant step toward legitimizing stablecoins in the eyes of traditional investors. If regulatory clarity continues, we will see an avalanche-like influx of institutional capital into this segment, which will strengthen stablecoins' position as a key bridge between the fiat and cryptocurrency economies.