State Street's Stablecoin Fund Bets on GENIUS Act Reserve Rules

State Street launched a government money market fund tailored for stablecoin issuers, the first major traditional asset manager product built around the GENIUS Act's reserve requirements. The law took effect in July 2025.

The State Street Stablecoin Reserves Money Market Fund is a registered Rule 2a-7 government money market fund. State Street Bank and Trust Company and crypto-focused Anchorage Digital serve as its initial backers, the company said.

State Street CEO Yie-Hsin Hung said the GENIUS Act created a clear framework for how stablecoin reserves can be invested. The firm's cash management business has historically focused on principal preservation, liquidity, and income, she added.

Anchorage Digital co-founder and CEO Nathan McCauley called stablecoins core financial infrastructure. Reserve management will play a larger role as the sector expands, he said. The fund combines State Street Investment Management's cash management experience with Anchorage's regulated digital asset infrastructure, McCauley added.

JPMorgan earlier this year unveiled a similar fund structure that places stablecoin reserves on-chain. BlackRock also entered the segment with a tokenized money market fund for stablecoin liquidity. State Street's launch follows that pattern but ties directly to the GENIUS Act, making it the first fund explicitly aligned with the federal framework.

The Boston-based custodian has steadily built out its digital asset presence. In January it unveiled a platform supporting tokenized deposits, stablecoins, and crypto-backed funds for institutions. That announcement followed a December 2025 partnership with Galaxy Digital to launch a tokenized fund for institutional investors.

Market forecasts cited by State Street project global stablecoin issuance could grow to between $1.9 trillion and $4 trillion by 2030. The outlook has encouraged both traditional finance firms and crypto-native companies to develop reserve management, liquidity, and settlement infrastructure. Stablecoins already facilitate cross-border trade, with Nigeria recording $59 billion in stablecoin flows during a period of naira volatility, according to an IMF report.

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

Institutional interest also appears elsewhere in State Street's portfolio. Regulatory filings in May showed the firm increased its exposure to Bitcoin-focused asset manager Strive Asset Management by roughly 770% after purchasing nearly one million shares of the company's publicly traded stock. The transaction was valued at about $17.7 million, the filing said.