State Street Launches Stablecoin Reserve Fund Under GENIUS Act Framework

State Street Investment Management has launched a new money market fund designed specifically for stablecoin issuers as competition grows among major financial firms in the digital asset sector. The new product follows the rules introduced under the GENIUS Act, the first federal law in the United States focused on stablecoin regulation.

The fund is structured as a Rule 2a-7 government money market fund and will invest mainly in US government securities and repurchase agreements, assets widely used to support dollar-backed stablecoins. State Street Bank and Anchorage Digital are among the first investors in the fund.

Financial Firms Race to Capture Stablecoin Market

The launch highlights the growing demand for regulated reserve management products as stablecoin adoption continues to rise globally. Earlier this year, JPMorgan and Morgan Stanley introduced similar products aimed at managing stablecoin reserve assets while meeting federal compliance standards.

State Street recently also introduced the SWEEP liquidity product in partnership with Galaxy Digital to support onchain cash management using stablecoins.

The global stablecoin market has expanded to nearly $315 billion, up sharply from around $260 billion when the GENIUS Act became law in 2025. Industry forecasts suggest the market could grow to as much as $4 trillion by 2030 as institutional interest in digital payments and blockchain finance continues to increase.