State Street launches a fund for stablecoin issuers under the new GENIUS Act
State Street's investment division has announced the launch of 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.
A New Standard for Reserves
The GENIUS Act established clear standards for using money markets as collateral for "stablecoins." The State Street fund is precisely tailored to these requirements, offering stablecoin issuers a transparent mechanism for reserve management. The first investors in the structure were State Street Bank and Trust Company and the crypto bank Anchorage Digital.
Yee-Sin Hung, head of State Street Investment Management, emphasized that the GENIUS Act has created clear rules for investing reserves. The new product combines the company's decades of experience in cash management with modern digital asset infrastructure. Anchorage Digital noted that the quality of reserve management is becoming critically important for transforming stablecoins into foundational financial infrastructure.
Market Outlook
According to my forecasts, by 2030, the volume of stablecoin issuance could reach $1.9-4 trillion amid active institutional adoption. This will inevitably increase demand for transparent collateral mechanisms through government money market funds. The State Street launch is a timely step that sets standards for the entire industry.
Recall that in May, State Street, together with Galaxy, launched the SWEEP fund — a tool for 24/7 liquidity management using stablecoins. This is further confirmation that traditional financial giants are actively integrating into the crypto ecosystem.
Expert Opinion: Creating such a fund is not just a reaction to regulation, but a strategic move. State Street is demonstrating that stablecoins can be a reliable asset class if backed by institutional reserves. The market is moving toward maturity, and initiatives like this will accelerate that process.