FinanceState Street Launches New Money Market Fund Targeting Stablecoin Reserves
The asset manager enters the competitive landscape alongside BlackRock, Franklin Templeton, and others focusing on managing reserves for the expanding stablecoin sector.
By Helene Braun|Edited by Jamie Crawley Jun 16, 2026, 2:27 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on (Getty Images)SummaryShow- State Street has unveiled a government money market fund specifically aimed at stablecoin issuers, intending to manage the reserves backing digital currencies under the GENIUS Act framework.
- This initiative heightens the competition among leading asset managers like BlackRock, Franklin Templeton, Fidelity, and JPMorgan to oversee the Treasury bills, cash, and money market funds that bolster stablecoins.
- With Tether and Circle already managing tens of billions in Treasury-related assets and global stablecoin issuance anticipated to hit between $1.9 trillion and $4 trillion by 2030, Wall Street firms view stablecoin reserve management as a rapidly expanding source of fee-generating assets.
The largest asset managers on Wall Street are increasingly vying to control the assets that support stablecoins, a market poised to expand into the trillions as digital currencies gain traction within the financial system.
On Tuesday, State Street Investment Management launched the State Street Stablecoin Reserves Money Market Fund, a government money market fund created specifically for stablecoin issuers operating under the guidelines of the GENIUS Act.
The introduction of this fund coincides with a surge of traditional financial institutions (TradFi) seeking to establish themselves as essential providers of reserve management services for stablecoin issuers. Typically pegged to the U.S. dollar, stablecoins are supported by reserves that frequently include Treasury bills, cash, and money market funds. As issuance increases, so does the pool of assets that generate management fees for fund managers.
Initial investors in the fund comprise State Street Bank and Trust Company and Anchorage Digital, a federally chartered bank focused on cryptocurrency in the U.S.
Stablecoins have emerged as a highly attractive opportunity in digital assets for traditional finance entities. Over the past year, major asset managers, custodians, and banks have been launching products aimed at tokenized cash markets and reserve management frameworks.
BlackRock currently manages a significant portion of the Treasury portfolio that backs Circle's $75 billion USDC stablecoin, while Franklin Templeton, Fidelity, and JPMorgan have all broadened their tokenized cash and digital asset offerings in the last year. As stablecoin issuers amass billions in Treasury bills and money market funds, asset managers increasingly perceive reserve management as a lucrative new source of assets under management.
Tether and Circle, the two dominant stablecoin issuers, collectively hold tens of billions of dollars in Treasury-related assets. State Street pointed to forecasts indicating that global stablecoin issuance could rise to between $1.9 trillion and $4 trillion by 2030, driven by greater institutional adoption.
This fund follows State Street's launch of SWEEP, a tokenized liquidity fund developed with Galaxy Digital. Together, these products reflect the firm’s broader strategy to establish infrastructure for what it anticipates will be a growing market for tokenized currency, on-chain cash management, and digital asset settlement.
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CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
In May, total exchange volumes decreased by 3.45% to $4.41 trillion; the lowest since September 2024. RWA perpetual futures volumes increased by 10.4%, reaching a new record high.
By CoinDesk ResearchJun 15, 2026In May, total exchange volumes decreased by 3.45% to $4.41 trillion; the lowest since September 2024. RWA perpetual futures volumes increased by 10.4%, reaching a new record high.
Why it matters:
In May, total exchange volumes decreased by 3.45% to $4.41 trillion; the lowest since September 2024. RWA perpetual futures volumes increased by 10.4%, reaching a new record high.
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