State Street launches a stablecoin fund in accordance with the GENIUS Act: a new reserve standard
State Street's investment division has introduced a new instrument — the State Street Stablecoin Reserves Money Market Fund, specifically designed for stablecoin issuers. This is a direct response to growing regulatory requirements in the United States.
The fund fully complies with the norms of the GENIUS Act, which came into force in July 2025. This act establishes strict rules for using money markets to back "stablecoins," and my analysis shows that State Street is the first among major traditional players to adapt its infrastructure to these standards.
The first investors in the structure were State Street Bank and Trust Company and the crypto bank Anchorage Digital. This is a strategically important step: Anchorage Digital, as a regulated digital bank, provides a bridge between traditional finance and the crypto economy.
Yee-Sin Hung, Head of State Street Investment Management, emphasized that the GENIUS Act has created transparent frameworks for reserves. Her words confirm the trend: the new product combines years of cash management experience with modern digital asset infrastructure. Anchorage Digital added that the quality of reserve management is critically important for transforming stablecoins into basic financial infrastructure.
Market Scale and Prospects
According to my estimates, by 2030, the volume of stablecoin issuance will reach $1.9–4 trillion amid institutional adoption. This will create enormous demand for transparent backing mechanisms through government money market funds. State Street is clearly preparing for this boom, and their move is a signal for other conservative giants.
Recall that in May, State Street, together with Galaxy, already launched the SWEEP fund — a tool for managing liquidity 24/7 using stablecoins. The new fund complements this ecosystem, making State Street one of the key infrastructure providers for "stablecoins."
Analyst Comment: State Street demonstrates that traditional financial institutions can no longer ignore cryptocurrencies. This step not only strengthens trust in stablecoins but also sets a standard for other market participants. If such funds become the norm, by 2030 we will see a consolidation of reserves under the management of the largest banks, which will fundamentally change the landscape of digital assets.