State Street launches a reserve fund for stablecoins in accordance with the GENIUS Act
The investment division of financial giant State Street has launched a new money market fund — State Street Stablecoin Reserves Money Market Fund. This instrument is specifically designed for stablecoin issuers, highlighting the growing integration of traditional finance and digital assets.
Compliance with the Regulatory Framework
The fund fully complies with the requirements of the U.S. GENIUS Act, which came into effect in July 2025. This regulatory act establishes clear rules for using money markets to back "stablecoins," which is critical for the legitimacy and transparency of the stablecoin market.
The first investors in the structure were State Street Bank and Trust Company and the crypto bank Anchorage Digital. Yie-Hsin Hung, head of State Street Investment Management, noted that the GENIUS Act has created a clear regulatory environment, allowing traditional cash management expertise to be combined with digital asset infrastructure.
Expert Opinion and Market Outlook
Anchorage Digital emphasized that the quality of reserve management is a decisive factor in transforming stablecoins into core financial infrastructure. This is particularly relevant given analyst forecasts: by 2030, the volume of stablecoin issuance could reach $1.9–4 trillion due to institutional adoption. Such growth will inevitably increase demand for transparent collateral mechanisms through government money market funds.
Recall that in May, State Street, together with Galaxy, already launched the SWEEP fund — a tool for managing liquidity 24/7 using stablecoins. The new product logically complements this lineup.
My analysis: The launch of this fund is not just a reaction to regulatory changes, but a strategic move by State Street to capture a share of the rapidly growing stablecoin market. In an environment where issuance volumes could exceed trillions of dollars, control over reserve infrastructure becomes a key asset. However, success will depend on how effectively the fund can ensure instant liquidity and compliance with the strict standards of the GENIUS Act.