State Street unveils stablecoin fund as GENIUS Act reshapes reserves

State Street has launched a government money market fund tailored for stablecoin issuers as new U.S. regulations begin to define how reserve assets can be managed under the GENIUS Act.

According to State Street, the newly introduced State Street Stablecoin Reserves Money Market Fund is structured as a registered Rule 2a-7 government money market fund and is designed to help stablecoin issuers meet reserve requirements established under the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, which became law in July 2025.

The product represents one of the earliest efforts by a major traditional asset manager to create an investment vehicle specifically aligned with the federal stablecoin framework. State Street Bank and Trust Company and crypto-focused bank Anchorage Digital are serving as initial backers of the fund.

Commenting on the launch, State Street Chief Executive Officer Yie-Hsin Hung said:

“With the GENIUS Act, a clear framework has been established for how stablecoin reserves can be invested.”

Hung added that the firm’s cash management business has historically focused on principal preservation, liquidity, and income.

Stablecoin issuers gain new reserve option

For stablecoin companies, reserve quality is becoming increasingly important as regulatory standards evolve.

Anchorage Digital co-founder and Chief Executive Officer Nathan McCauley described stablecoins as core financial infrastructure and said reserve management will play a larger role as the sector expands.

According to McCauley, the fund combines State Street Investment Management’s experience in cash management with Anchorage Digital’s regulated digital asset infrastructure under the new regulatory framework.

The launch arrives as large financial institutions continue introducing products tied to tokenized cash and digital asset settlement. Earlier this year, JPMorgan unveiled a similar fund structure intended to place stablecoin reserves on-chain.

BlackRock has also entered the segment through a tokenized money market fund that provides an option for stablecoin-related liquidity management.

Recent activity suggests State Street has been steadily building its digital asset presence. As reported by crypto.news in January, the firm unveiled a platform supporting tokenized deposits, stablecoins, and crypto-backed funds for institutional clients.

At the time, the Boston-based custodian said it planned to develop and manage money market funds and exchange-traded funds alongside its asset management division and third-party managers.

The announcement followed State Street’s December 2025 partnership with Galaxy Digital to launch a tokenized fund for institutional investors.

Stablecoin market growth attracts major institutions

State Street’s latest launch comes as market participants project significant growth in stablecoin issuance over the coming years.

According to estimates cited by the company, global stablecoin issuance could grow to between $1.9 trillion and $4 trillion by 2030. The forecast has encouraged both traditional financial firms and crypto-native companies to develop infrastructure designed to support reserve management, liquidity, and settlement services.

Alongside the new reserve fund, State Street recently introduced the State Street Galaxy Onchain Liquidity Sweep Fund, or WEEP, a tokenized liquidity vehicle built to support around-the-clock on-chain cash management.

Institutional interest in digital assets has also appeared in other parts of State Street’s portfolio. In May, regulatory filings showed the firm increased its exposure to Bitcoin-focused asset manager Strive Asset Management by approximately 770% after purchasing nearly one million shares of the company’s publicly traded stock.

The transaction was valued at roughly $17.7 million and lifted State Street’s total stake to nearly one million shares, according to the filing.