State Street launches GENIUS Act-aligned money market fund for stablecoin reserves
State Street Investment Management launched a money market fund for stablecoin issuers to hold reserve assets under the GENIUS Act framework. The fund is a Rule 2a-7 government money market fund investing in US government securities and repurchase agreements, and its first investors include State Street Bank and Anchorage Digital. It is designed to meet the reserve requirements created by the GENIUS Act, the first federal US stablecoin framework signed into law on July 18, 2025. The launch follows State Street’s tokenized SWEEP liquidity product with Galaxy Digital, which supports onchain cash management using stablecoins. Asset managers are racing to capture stablecoin reserve business. JPMorgan, Morgan Stanley, and Coinbase have also backed or filed for products aimed at holding stablecoin reserves while earning yield. The stablecoin market has risen to about $315 billion, and Citi has projected issuance could reach $1.9 trillion to $4 trillion by 2030.
