State Street has introduced a government money market fund designed exclusively for stablecoin issuers, responding to the evolving regulatory environment shaped by the GENIUS Act. This new product, named the State Street Stablecoin Reserves Money Market Fund, is registered under Rule 2a-7 and aims to assist stablecoin companies in adhering to reserve requirements mandated by the GENIUS Act, which was enacted in July 2025.
The fund marks an early move by a major traditional asset manager to create an investment vehicle specifically tailored to the federal stablecoin framework. Initial supporters include State Street Bank and Trust Company and Anchorage Digital, a crypto-focused bank. State Street CEO Yie-Hsin Hung emphasized that the GENIUS Act has provided a clear guideline for investing stablecoin reserves, and the firm’s cash management operations have long prioritized principal preservation, liquidity, and income generation.
For stablecoin issuers, the quality of reserves is becoming a critical factor as regulatory standards tighten. Anchorage Digital co-founder Nathan McCauley noted that stablecoins are evolving into core financial infrastructure, and effective reserve management will gain importance as the sector expands. He highlighted that the new fund blends State Street’s expertise in cash management with Anchorage Digital’s regulated digital asset infrastructure under the new legal framework.
This launch comes at a time when large financial institutions are increasingly rolling out products tied to tokenized cash and digital asset settlement. Earlier in the year, JPMorgan introduced a similar fund structure aimed at putting stablecoin reserves on-chain, while BlackRock has entered the space with a tokenized money market fund for stablecoin liquidity management. State Street has been steadily building its digital asset capabilities, having unveiled a platform in January that supports tokenized deposits, stablecoins, and crypto-backed funds for institutional clients. The firm also partnered with Galaxy Digital in December 2025 to launch a tokenized fund for institutional investors.
Market participants anticipate significant growth in stablecoin issuance, with State Street estimating global issuance could reach between $1.9 trillion and $4 trillion by 2030. This forecast is driving both traditional financial firms and crypto-native companies to develop infrastructure for reserve management, liquidity, and settlement services. Alongside the new reserve fund, State Street recently launched the State Street Galaxy Onchain Liquidity Sweep Fund, a tokenized vehicle for round-the-clock on-chain cash management. Institutional interest in digital assets is also evident in State Street’s portfolio, as regulatory filings showed the firm increased its exposure to Bitcoin-focused Strive Asset Management by around 770% in May, purchasing nearly one million shares worth roughly $17.7 million.