State Street Launches GENIUS Act-Compliant Fund for Stablecoin Issuers
By
Sam Reid
Points
- State Street has launched a new money market fund aligned with the GENIUS Act, designed specifically to support stablecoin issuers with regulated reserve management.
- Initial investors include State Street Bank and Trust Company and Anchorage Digital, the first federally chartered crypto bank in the United States.
- Analysts project global stablecoin issuance could reach between $1.9 trillion and $4 trillion by 2030, adding momentum to the case for regulated reserve infrastructure.
State Street Investment Management has launched a new money market fund built specifically to support stablecoin issuers, marking one of the first products designed around the United States’ new regulatory framework for digital currency reserves.
The State Street Stablecoin Reserves Money Market Fund is a registered Rule 2a-7 government money market fund, structured to align with the GENIUS Act, which was signed into law in July 2025.
The legislation, short for Guiding and Establishing National Innovation for U.S. Stablecoins, sets clear rules around how stablecoin reserves can be invested through registered money market funds, giving issuers a regulated pathway that previously did not exist in such a formal capacity.
Initial investors in the fund include State Street Bank and Trust Company alongside Anchorage Digital, which operates the first federally chartered crypto bank in the United States. The involvement of a federally regulated crypto bank as a launch investor signals just how closely traditional finance and digital asset infrastructure are now converging.
“With the GENIUS Act, a clear framework has been established for how stablecoin reserves can be invested,” said Yie-Hsin Hung, president and CEO of State Street Investment Management. “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, said the partnership combines State Street’s cash management expertise with regulated stablecoin infrastructure, with the aim of building a more resilient foundation for how stablecoin reserves are managed going forward.
The timing of the launch reflects where the stablecoin market currently sits. According to Citi Institute projections, global stablecoin issuance could reach between $1.9 trillion and $4 trillion by 2030, fuelled by growing institutional adoption and a regulatory landscape that is finally catching up with the pace of innovation in the space.
As more institutions look to issue or hold stablecoins at scale, demand for transparent, regulated reserve management tools is expected to grow significantly alongside it.
This is not State Street’s first move into tokenised markets. The launch follows the recent introduction of the State Street Galaxy Onchain Liquidity Sweep Fund, a separate product built with Galaxy Digital that allows for 24/7 liquidity management using stablecoins. Together, the two launches point to a clear and deliberate strategy from State Street to position itself at the centre of how institutional finance interacts with digital assets.
State Street Investment Management currently manages over $5 trillion in assets across 60 countries, giving the firm considerable weight behind any product it chooses to bring to a new and still-developing corner of the financial system.
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