State Street launches a fund for stablecoin issuers in accordance with the GENIUS Act
The investment division of State Street Corporation has launched the State Street Stablecoin Reserves Money Market Fund. This instrument is specifically designed for stablecoin issuers, reflecting the growing need for regulated reserve mechanisms in the digital asset market.
The fund fully complies 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," marking an important step in the institutionalization of the crypto industry.
The first investors in the structure were State Street Bank and Trust Company and the crypto bank Anchorage Digital. This collaboration underscores the integration of traditional financial institutions with digital infrastructure.
Yie-Hsin Hung, CEO of State Street Investment Management, noted that the GENIUS Act has created transparent rules for investing reserves. The new product combines the company's decades of experience in cash management with modern digital asset infrastructure, which is critically important for scaling the stablecoin market.
Anchorage Digital emphasized that the quality of reserve management is a key factor in transforming stablecoins into foundational financial infrastructure. Without reliable backing mechanisms, trust in "stablecoins" will remain questionable.
According to analyst forecasts, the volume of stablecoin issuance could reach $1.9-4 trillion by 2030 amid active institutional adoption. This will inevitably increase demand for transparent and regulated backing mechanisms through government money market funds.
Expert opinion: The launch of the State Street Stablecoin Reserves Money Market Fund is not just another product, but a signal that major players in the traditional financial sector are beginning to perceive stablecoins as a full-fledged asset class. In the next 2-3 years, we will see an avalanche-like growth of such instruments, especially after the introduction of the GENIUS Act. However, the key challenge will remain ensuring 24/7 liquidity, as already demonstrated by the SWEEP fund from State Street and Galaxy.