$5.5T State Street Launches GENIUS Act Compliant Stablecoin Fund
Highlights
- State Street has announced launching a stablecoin money market fund.
- The fund adheres to the GENIUS Act's stablecoin laws.
- It aims to help stablecoin issuers meet the reserve goals stated in the legislation.
State Street, which manages almost $5.5 trillion, has introduced a government money market fund specifically for stablecoin issuers. It is compliant under the recently approved GENIUS Act framework.
State Street Launches Stablecoin Money Market Fund
The fund, named the State Street Stablecoin Reserves Money Market Fund, is organized as a registered Rule 2a-7 government money market fund. The company says the issuance is targeted at helping to fulfill reserve requirements under the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, which was enacted in July 2025.
It’s one of the first such significant initiatives by a traditional asset management giant to create a fund aimed at the new federal stablecoin regime. Recently, JPMorgan also introduced a fund with an identical mechanism to bring stablecoin reserves on-chain.
Initial Backers of the fund include State Street Bank and Trust Company, as well as crypto banking firm Anchorage Digital.
Yie-Hsin Hung, CEO of State Street, views the GENIUS Act as a turning point for institutional stablecoin infrastructure. “With the GENIUS Act, a clear framework has been established for how stablecoin reserves can be invested,” Hung said. She also said that the company’s long history of cash management has been “principal preservation, liquidity and income.”
Stablecoins are “core financial infrastructure,” and the quality of the reserves is more important all the time for the industry, according to stablecoin chief executive officer and co-founder Nathan McCauley.
“As the GENIUS Act establishes a clear regulatory framework, this fund brings together State Street Investment Management’s decades of cash management expertise with Anchorage Digital’s regulated stablecoin infrastructure,” McCauley stated.
Stablecoin Market Eyes Surge To $4 Trillion
The fund comes amid projections of massive growth in the stablecoin market. The global stablecoin issuance volume is projected to rise between $1.9 trillion and $4 trillion by 2030, per State Street.
The announcement comes shortly after State Street recently launched the State Street Galaxy Onchain Liquidity Sweep Fund (WEEP). It’s a tokenized liquidity fund designed to facilitate 24×7 on-chain cash management.
Earlier, BlackRock launched a similar tokenized market money fund for stablecoin holders.
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