State Street launches a stablecoin fund in accordance with the GENIUS Act: a new reserve standard
State Street's investment division has launched the State Street Stablecoin Reserves Money Market Fund, a cash fund exclusively targeting stablecoin issuers. This instrument was created in compliance with the requirements of the U.S. GENIUS Act, which came into effect in July 2025 and establishes clear rules for backing "stablecoins" through money markets.
The first investors in the fund were State Street Bank and Trust Company and the crypto bank Anchorage Digital. State Street Investment Management Head Ye-Sin Hung emphasized that the GENIUS Act provided clarity in reserve regulation, and the new product combines the company's decades of experience in cash management with digital asset infrastructure.
Anchorage Digital noted that the quality of reserve management is a key factor in transforming stablecoins into basic financial infrastructure. This statement reflects a growing understanding that transparency and reliability of backing are the foundation for trust in digital currencies.
According to analysts' forecasts, by 2030, the volume of stablecoin issuance could reach $1.9–4 trillion, driving demand for instruments like the State Street fund. This trend confirms that institutional players are increasingly integrating stablecoins into traditional financial systems, demanding high standards of liquidity and auditing.
Recall that in May, State Street, together with Galaxy, launched the SWEEP fund—an instrument for round-the-clock liquidity management using stablecoins. This is another step toward creating hybrid infrastructure where traditional finance and blockchain operate within a single ecosystem.
My view: The launch of the State Street Stablecoin Reserves Money Market Fund is not just another product but a signal to the market that regulation is becoming a driver of innovation. Given State Street's scale, such initiatives could set standards for the entire stablecoin sector, especially in the context of the GENIUS Act requirements. Investors should closely monitor the development of this area, as it could define new rules of the game for digital asset reserves.