State Street launches a stablecoin fund in accordance with the GENIUS Act: a new reserve standard
State Street's investment division has launched a new money market fund — the State Street Stablecoin Reserves Money Market Fund. This is a specialized instrument designed exclusively for stablecoin issuers. This move marks an important stage in the institutionalization of the digital asset market, as traditional financial giants begin to actively adapt to the needs of the crypto industry.
Compliance with strict regulatory requirements
The fund fully complies with the provisions of the GENIUS Act, which came into force in July 2025. This regulatory act introduces clear rules for using money markets to back "stablecoins." Thus, State Street is not just creating a product but setting a standard for the entire industry, integrating traditional liquidity management mechanisms with the requirements of the new regulation.
The first investors in the structure were State Street Bank and Trust Company and the crypto bank Anchorage Digital. This is logical: Anchorage Digital, as one of the leading custodial banks for digital assets, is interested in reliable and transparent reserves for its issuer clients.
Expert perspective on the product
Yie-Hsin Hung, head of State Street Investment Management, emphasized that the GENIUS Act has created a predictable regulatory environment for investing reserves. According to her, the new product combines the company's decades of experience in cash management with cutting-edge digital asset infrastructure. Anchorage Digital, in turn, noted that the quality of reserve management is becoming a critical factor in transforming stablecoins from a niche instrument into a core financial infrastructure.
Market outlook
Analysts predict that by 2030, the volume of stablecoin issuance will reach $1.9–4 trillion amid growing institutional adoption. This will inevitably increase demand for transparent and reliable backing mechanisms through government money market funds. It is important to note that earlier, in May, State Street, together with Galaxy, launched the SWEEP fund — a tool for round-the-clock liquidity management using stablecoins. The new product logically complements this ecosystem.
My expert analysis: This move by State Street is not just the launch of another fund but a signal to the entire market. The GENIUS Act has effectively legalized and structured the stablecoin market, and products like this are becoming the "gold standard" for issuers. In the next 2-3 years, we will see an avalanche-like growth of such instruments, which, on the one hand, will strengthen trust in stablecoins, and on the other, will make the market more consolidated and less volatile.