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 specifically designed for stablecoin issuers. This instrument has been created in strict compliance with the requirements of the U.S. GENIUS Act, which came into effect in July 2025 and establishes clear rules for using money markets to back "stablecoins."
The first investors in the fund are State Street Bank and Trust Company and the crypto bank Anchorage Digital. This is a landmark event, as it demonstrates how traditional financial giants are integrating with digital assets, creating a reliable infrastructure for stablecoin reserves.
Yie-Hsin Hung, head of State Street Investment Management, emphasized that the GENIUS Act has established transparent regulatory frameworks, allowing the combination of cash management expertise with modern digital asset infrastructure. Anchorage Digital noted that the quality of reserve management is becoming a critical factor for transforming stablecoins into foundational 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 and regulated collateral mechanisms through government money market funds, similar to the one presented by State Street.
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, strengthening the company's position in the digital asset market.
Expert opinion: State Street's initiative is not just another product, but a strategic move that sets standards for the entire industry. Amid growing regulation, stablecoin issuers will be forced to adapt, and instruments like the Stablecoin Reserves Money Market Fund will become a mandatory element of their operational model. I expect that in the next 12–18 months, we will see a wave of similar solutions from other major players, accelerating the convergence of traditional finance and the crypto economy.