State Street launches a specialized stablecoin fund in accordance with the GENIUS Act
The investment division of financial giant State Street has launched a new money market fund — the State Street Stablecoin Reserves Money Market Fund. This instrument is specifically designed for stablecoin issuers and has already attracted its first institutional investors: State Street Bank and Trust Company and crypto bank Anchorage Digital.
The key feature of the product is its full compliance with the requirements of the GENIUS Act, which came into force in July 2025. This regulatory act establishes strict rules for using money market funds to back "stablecoins," creating a transparent and regulated environment for issuers.
Ye-Xin Hung, Head of State Street Investment Management, emphasized that the GENIUS Act has defined clear frameworks for investing reserves. The new fund 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 a critical factor in transforming stablecoins into core financial infrastructure.
Stablecoin Market: Forecasts and Prospects
Analysts predict that by 2030, the volume of stablecoin issuance will reach $1.9–4 trillion amid active institutional adoption. This will inevitably increase demand for transparent backing mechanisms through government money market funds, such as State Street's new product.
Recall that in May, State Street, together with Galaxy, already launched the SWEEP fund — a tool for 24/7 liquidity management using stablecoins, demonstrating the company's consistent course toward integrating digital assets into traditional financial products.
Expert Opinion: Launching a specialized fund to meet the requirements of the GENIUS Act is not just a reaction to regulation but a strategic move. State Street is effectively building a bridge between traditional money markets and the crypto industry, which could set a precedent for other major financial institutions. If forecasts for stablecoin market growth prove accurate, such instruments will become the de facto standard for reserve backing.