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 tool — the State Street Stablecoin Reserves Money Market Fund. This product is specifically designed for stablecoin issuers and has already attracted initial investors, including State Street Bank and Trust Company and crypto bank Anchorage Digital.
The key feature of the fund is its full compliance with the requirements of the U.S. GENIUS Act, which came into effect in July 2025. This regulatory act establishes clear rules for using money markets to back "stablecoins," an area that was previously uncertain for many issuers. My assessment: the GENIUS Act has become the regulatory anchor necessary for scaling the industry, and State Street, as always, is playing ahead of the curve.
Yie-Hsin Hung, head of State Street Investment Management, emphasized that the law has created transparent frameworks 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, noted that the quality of reserve management is becoming a critical factor in transforming stablecoins into a foundational element of global financial infrastructure.
Analytical forecasts point to impressive growth: by 2030, the volume of stablecoin issuance could reach $1.9–4 trillion. This represents explosive demand for transparent and reliable backing mechanisms that will be based on government money market funds. State Street is clearly positioning itself to take a leading role in this segment.
Interestingly, this is not the company's first step into tokenized finance. Recall that in May, State Street, together with Galaxy, launched the SWEEP fund — a tool for managing liquidity 24/7 using stablecoins. Thus, we are seeing a consistent strategy: from simple reserve custody to a full-fledged infrastructure for digital assets.
My expert opinion: The launch of the State Street Stablecoin Reserves Money Market Fund is a signal for the entire market. When a traditional giant managing trillions of dollars adapts its products to the specifics of the crypto industry, it means stablecoins are ceasing to be a niche experiment. They are becoming a mainstream tool, and competition for reserve quality will only intensify.