State Street launches a GENIUS Act-compliant stablecoin reserve fund
- Tokenization Insight
- 7 hours ago
- 2 min read
State Street launches a GENIUS Act-compliant stablecoin reserve fund👇
State Street Investment Management has launched the State Street Stablecoin Reserves Money Market Fund, a registered Rule 2a-7 government money market fund specifically designed for stablecoin issuers.
The fund has been structured to align with the requirements of the GENIUS Act, providing a compliant vehicle for stablecoin reserve management under the evolving U.S. regulatory framework.
State Street Bank and Anchorage Digital will be the initial investors in the fund.
➡️Why this matters
USD stablecoins have become the largest real-world application of blockchain technology, with more than $300B in circulating supply and trillions of dollars in annual transaction volume.
The U.S. government is increasingly viewing USD stablecoins as a strategic priority for strengthening global demand for the dollar and the US Treasury debt that backs it. As adoption grows, so too does the need for institutional-grade reserve infrastructure.
A significant portion of stablecoin reserves is invested in short-term U.S. Treasuries. As a result, issuers require secure, liquid, and compliant investment vehicles that can support large-scale reserve management.
State Street’s move directly addresses this need by combining:
• Money market fund expertise
• Treasury and cash management capabilities
• Regulatory alignment with the GENIUS Act
Money market funds are already the largest tokenized asset category. As stablecoin adoption accelerates, dedicated reserve funds could become another major driver of growth for the broader tokenized treasury and liquidity market.
The 2a-7 status seperates the product from many private funds on the market and places it firmly in the institutional buyside investment mandate category.
Yie-Hsin Hung, President and CEO of State Street Investment Management. “State Street Investment Management’s time-tested approach to cash management focuses on principal preservation, liquidity and income, and we’re excited to partner with Anchorage Digital to bring these capabilities to the digital assets space.”
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