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 instrument — the State Street Stablecoin Reserves Money Market Fund. This product 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 GENIUS Act establishes clear standards for using money markets as collateral for "stablecoins." This is a key point: stablecoin issuers are now required to hold reserves in highly liquid, regulated instruments, and the new State Street fund fits perfectly into this paradigm.
The first investors in the structure were State Street Bank and Trust Company and the crypto bank Anchorage Digital. This is no coincidence — both organizations have years of experience with digital assets and understand the importance of transparent reserves.
Yie-Hsin Hung, head of State Street Investment Management, noted that the GENIUS Act has created a predictable environment for reserve management. According to her, the new product combines State Street's expertise in cash management with digital asset infrastructure. Anchorage Digital emphasized that the quality of reserve management is critical for transforming stablecoins into basic financial infrastructure.
Analysts predict that by 2030, the volume of stablecoin issuance will reach $1.9-4 trillion amid institutional adoption. This will inevitably increase demand for transparent collateral mechanisms through government money market funds. Earlier, in May, State Street and Galaxy launched the SWEEP fund — a tool for managing liquidity 24/7 using stablecoins, confirming the giant's strategic interest in this sector.
Analyst comment: The launch of the State Street Stablecoin Reserves Money Market Fund is not just another product, but a signal of market maturity. When traditional financial institutions begin offering specialized solutions for stablecoins, it means the industry is transitioning from a speculative phase to an institutional one. The GENIUS Act, despite criticism, is indeed creating infrastructure for mass adoption, and State Street is skillfully leveraging this moment.