State Street launches a fund for stablecoin issuers compliant with the GENIUS Act
The investment division of financial giant State Street has introduced a new money market fund — the State Street Stablecoin Reserves Money Market Fund. This instrument is specifically designed for stablecoin issuers and has already earned the status of the first product of its kind to fully comply with the requirements of the U.S. GENIUS Act.
The GENIUS Act, which came into effect in July 2025, established strict requirements for the reserves backing "stablecoins." The new State Street fund is designed precisely to meet these rules, offering issuers the opportunity to invest reserves in highly liquid, low-risk government securities.
The first investors in the structure were State Street Bank and Trust Company and the crypto bank Anchorage Digital. This is no coincidence: Anchorage Digital has long positioned itself as a reliable bridge between traditional finance and digital assets, while State Street's own participation underscores confidence in the product.
Yee-Sin Hung, Head of State Street Investment Management, noted that the GENIUS Act created clear and predictable rules for investing reserves. According to her, the new product combines the company's decades of experience in cash management with modern digital asset infrastructure. Anchorage Digital, in turn, emphasized that the quality of reserve management is becoming a critically important 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 active institutional adoption. This will undoubtedly increase demand for transparent and reliable backing mechanisms, such as government money market funds. Recall that earlier, in May, State Street, together with Galaxy, launched the SWEEP fund — a tool for managing liquidity 24/7 using stablecoins.
Expert opinion: The launch of the State Street Stablecoin Reserves Money Market Fund is not just another product, but a signal that the traditional financial sector is beginning to view stablecoins as a full-fledged asset class. Given State Street's scale and the strictness of the GENIUS Act requirements, this fund could become a benchmark for all future reserve instruments. Issuers that cannot offer a similar level of transparency and regulatory compliance risk losing the trust of institutional investors.