State Street Investment Management has launched a money market fund for stablecoin issuers, offering a tool for maintaining reserve assets within the framework established by the GENIUS Act.
The Fund is structured as a Rule 2a-7 government money market fund and will invest in assets commonly used to back stablecoins, including U.S. government securities and repurchase agreements. The fund’s initial investors include State Street Bank and Anchorage Digital, a federally licensed cryptocurrency bank.
State Street said the product was designed to meet the reserve requirements established by the GENIUS Act, which was passed on July 18, 2025, creating the first federal regulatory framework for payment stablecoins in the United States.
The launch follows the launch of the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), a tokenized liquidity product developed in partnership with Galaxy Digital that enables online cash management using stablecoins.
State Street Investment Management, the asset management division of State Street Corporation, oversees over $5 trillion in assets and is one of the world’s largest investment managers.
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Asset managers compete for stablecoin reserve assets
State Street’s launch comes as financial firms rush to develop products aimed at managing assets backing stablecoins following the passage of the GENIUS Act.
In May, JPMorgan filed to launch JLTXX, a tokenized money market fund that aims to hold assets backing stablecoins while complying with the requirements of the GENIUS Act. The fund would invest in U.S. Treasury bills and overnight repurchase agreements, assets commonly used to back dollar-pegged stablecoins.
The filing comes weeks after Morgan Stanley launched the Stablecoin Reserves Portfolio, a money market fund that allows stablecoin issuers to hold reserve assets while earning interest.
In June, Coinbase disclosed an investment in the ProShares GENIUS Money Market ETF, a treasury-focused fund that invests in assets legally eligible for stablecoin payments. The exchange said the investment is in line with its growing stablecoin and cash management business.
According to DefiLlama, the stablecoin market has grown to about $315 billion from about $260 billion when the GENIUS Act went into effect. data. State Street cites Citi forecasts that estimate global stablecoin issuance could reach between $1.9 trillion and $4 trillion by 2030.
Source: DefiLlama
The stablecoin reserve asset market has expanded with the adoption of stablecoins. According to Tether reserves as of March 2026 reportthe company had USDT (USDT) backing assets of approximately $191.8 billion, with the majority of its reserves in the form of cash equivalents being U.S. Treasury bills.
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