The investment division of State Street has introduced the State Street Stablecoin Reserves Money Market Fund, designed specifically for stablecoin issuers.
This fund complies with the U.S. GENIUS Act, which takes effect in July 2025. The legislation regulates the use of money markets to back "stablecoins."
The initial investors in this fund include State Street Bank and Trust Company and crypto bank Anchorage Digital.
Ye-Sin Hung, head of State Street Investment Management, noted that the GENIUS Act has established clear rules for investing reserves. She stated that the new product combines the company's cash management expertise with the infrastructure for digital assets.
Anchorage Digital emphasized that the quality of reserve management is crucial for integrating stablecoins into the foundational financial infrastructure.
Analysts predict that by 2030, the issuance of stablecoins could reach between $1.9 trillion and $4 trillion due to institutional adoption. This will increase the demand for transparent backing mechanisms through government money market funds.
Additionally, in May, State Street and Galaxy launched the SWEEP fund—a tool for 24/7 liquidity management using stablecoins.