State Street launches a specialized fund for stablecoin issuers in accordance with the GENIUS Act
The investment division of financial giant State Street has introduced a new tool — the State Street Stablecoin Reserves Money Market Fund. This product is specifically designed for stablecoin issuers, reflecting the growing institutionalization of the cryptocurrency sector.
The fund's key feature is its full compliance with the requirements of the U.S. GENIUS Act, which came into effect in July 2025. This regulatory act establishes strict rules for using money market instruments to back stablecoin reserves, and State Street is evidently aiming to take a leading position in this new regulated niche.
The first participants in the structure are State Street Bank and Trust Company and crypto bank Anchorage Digital. This partnership symbolizes the merger of traditional banking infrastructure with digital assets.
State Street Investment Management head Yie-Hsin Hung emphasized that the GENIUS Act has created clear legal frameworks for reserve investing. According to her, the new product combines State Street's long-standing experience in liquidity management with cutting-edge digital asset infrastructure. Anchorage Digital, in turn, noted that the quality of reserve management is becoming a critical factor for transforming stablecoins into a fundamental element of the financial system.
Analyst forecasts point to colossal market growth: by 2030, the volume of stablecoin issuance could reach between $1.9 and $4 trillion amid active institutional adoption. This will inevitably drive demand for transparent and reliable backing mechanisms, such as the government money market funds offered by State Street.
It is worth noting that this is not State Street's first step into the world of digital assets. Earlier, in May, the company, together with Galaxy, launched the tokenized SWEEP fund, designed for round-the-clock liquidity management using stablecoins. The launch of the new fund is a logical continuation of the strategy to integrate traditional finance and the crypto economy.
Analytical commentary: State Street's actions are a powerful signal to the market. The largest players in traditional finance are not just observing cryptocurrencies but are actively building infrastructure for their regulated growth. The fund under the GENIUS Act is a "bridge" between the old world of money markets and the new world of stablecoins, which could become a standard for the entire industry.