State Street's New Fund Targets Stablecoin Reserve Rules

State Street Investment Management launched a money market fund today that is designed to hold stablecoin reserves. The State Street Stablecoin Reserves Money Market Fund (SSCXX) will invest in cash and short-term U.S. Treasuries maturing within 93 days, plus overnight repo agreements backed by those Treasuries, the firm said.

Anchorage Digital, the federally chartered crypto bank, is the fund's first external backer. State Street Bank and Trust Company also serves as a financial facilitator.

The fund launched with roughly $121 million in assets under management, a 3.51% yield, and a 0.18% net expense ratio on its Capital Class, which carries a $15 million minimum investment. It targets a stable $1.00 net asset value and has a three-day weighted average maturity, well inside the 60-day regulatory cap. Access is limited to issuers operating under the GENIUS Act's oversight.

The fund carries no FDIC insurance and no principal guarantee from State Street, per the firm's risk disclosures. The restricted asset mix could also compress yields compared with other government or prime money market alternatives.

The launch follows State Street's introduction of SWEEP, a tokenized liquidity product built with Galaxy Digital that enables around-the-clock cash management on the blockchain. Together, the two products form the core of State Street's push into tokenized money infrastructure.

The GENIUS Act, signed into law in July 2025, gave stablecoin issuers their first federal framework in the U.S. The act requires one-to-one backing with high-quality liquid assets and explicitly allows registered 1940 Act money market funds to qualify as reserve vehicles.

BlackRock already manages a large share of the Treasury portfolio behind Circle's nearly $75 billion USDC. Franklin Templeton, Fidelity, JPMorgan, Goldman Sachs, and BNY have all rolled out competing products targeting the same pool of assets over the past year.

"For more than 40 years, the cash management business of State Street Investment Management has delivered liquidity solutions to the world's largest and most sophisticated institutional investors," said Yie-Hsin Hung, president and CEO of State Street Investment Management, in the company's announcement. "We're excited to partner with Anchorage Digital to bring these capabilities to the digital assets space."

Nathan McCauley, co-founder and CEO of Anchorage Digital, framed the partnership around infrastructure credibility. "Stablecoins are quickly becoming core financial infrastructure, making the quality and management of their reserves critically important," McCauley said in the same release.

State Street pointed to Citi Institute research from September 2025 projecting that global stablecoin issuance could reach $1.9 trillion to $4 trillion by 2030. Those projections, if realized, would grow reserve assets generating management fees by multiples from today's levels.